Nigerian capitalization surges by N365 billion.

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Nigerian Exchange Limited Closes on Positive Note, Market Capitalisation Rises by N365 Billion

The Nigerian Exchange Limited (NGX) ended yesterday’s trading session on a positive note, with market capitalization increasing by N365 billion. This surge was driven by the release of full-year 2024 financial results from listed companies.

At the close of transactions, the all-share index rose by 590.55 points, representing a 0.57% increase to close at 104,549.74 points. Similarly, the overall market capitalization value gained N365 billion to close at N64.521 trillion.

Analysts at Vetiva Dealings and Brokerage stated, “Corporate earnings and announcements will remain the primary market drivers in the near term as earnings season progresses.”

Afrinvest Research noted, “Investor sentiment, as measured by market breadth, weakened to -0.20x (previously -0.03x) as 26 stocks advanced, 38 declined. We expect the market to maintain the positive momentum tomorrow, underpinned by investors re-assessment of the valuation of major tickers as more FY2024 earnings are rolled out.”

The market’s positive performance was driven by price appreciation in large and medium-capitalised stocks, including Aradel Holdings, Stanbic IBTC Holding, Nigerian Breweries, Nigerian Aviation Handling Company (NAHCO), and Vitafoam Nigeria.

However, investor sentiment, as measured by market breadth, closed negative, with 26 stocks gaining and 38 stocks losing. Aradel Holdings recorded the highest price gain of 10% to close at N594.

On the other hand, McNichols and Caverton Offshore Support Group led the losers’ chart, both declining by 10% to close at N1.44 kobo and N2.07 kobo, respectively.

The total volume traded dipped by 22.2% to 421.618 million units, valued at N14.998 billion, and exchanged in 16,256 deals. Transactions in the shares of Universal Insurance topped the activity chart with 33.619 million shares valued at N21.723 million.

Fidelity Bank followed with 31.905 million shares worth N621.756 million, while FCMB Group traded 23.128 million shares valued at N269.526 million. Japaul Gold & Ventures traded 20.214 million shares valued at N43.399 million, while Veritas Kapital Assurance transacted 17.090 million shares worth N22.046 million.

In terms of sectoral performance, the NGX Insurance Index led the gainers, rising by 2.42%, followed by the NGX Consumer Goods Index, which appreciated by 1.03%. The NGX Oil and Gas Index also gained 0.55%, while the NGX Banking Index rose by 0.45%.

On the other hand, the NGX Industrial Index declined by 0.15%, while the NGX Growth Index fell by 0.13%.

Overall, the NGX’s positive performance was driven by the release of strong corporate earnings and the expectation of more positive results from other listed companies. Analysts expect the market to maintain its positive momentum in the near term, driven by investors’ re-assessment of the valuation of major tickers as more FY2024 earnings are rolled out.

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