Against the Odds: NGX Investors Pocket N1.8 Trillion Amid Policy Storms
Despite regulatory turbulence and a shaky macroeconomic backdrop, the Nigerian equities market soared last week, handing investors a stunning gain of ₦1.75 trillion in market capitalisation. This marks a 2.4% week-on-week increase, pushing the total value of listed equities to an all-time high of ₦74.53 trillion.
⚠️ Regulatory Tension vs Market Resilience
Early in the week, the Central Bank of Nigeria (CBN) issued a directive restricting banks from:
• Paying dividends, and
• Making fresh investments in their offshore subsidiaries.
This initially triggered sell pressure across banking stocks. But by mid-week, the market shook off the panic. Investors, particularly institutional players, began hunting for undervalued opportunities, especially in key sectors with strong fundamentals.
The result? A surge in optimism that reignited buying momentum across the board.
Signs of Growing Confidence
The NGX All-Share Index (ASI) followed suit, as the Year-to-Date (YTD) return climbed to 14.8%, confirming the market’s bullish undertone.
Investor participation was also robust:
• Trading volume rose by 65.6%, with over 3.39 billion shares traded (vs. 2.05 billion in the previous week).
• Market value doubled, skyrocketing by 114.52% to ₦108.72 billion.
• Number of deals executed jumped to 95,625, up from 64,702 — a 47.8% increase.
These figures underscore renewed retail and institutional interest despite policy headwinds.
️ Sectoral Performance: Oil & Gas Leads the Charge
Gains were widespread across major sectors:
• Oil & Gas: +5.27%, led by Seplat and MRS as global oil sentiment improved.
• Commodities: +4.37%, driven by demand in FTN Cocoa and Presco.
• Banking: +3.6%, rebounding from initial selloffs as investors repositioned in names like GTCO and Stanbic IBTC.
• Insurance: +2.37%, with value-seekers eyeing underpriced insurers.
• Consumer Goods: +2.16%, supported by demand in Custodian and Ellah Lakes.
The only laggard was the Industrial Goods sector, down by 0.36%, due to profit-taking in RT Briscoe, Holt, Enamelware, and Dangote Cement.
What to Expect This Week
Analysts at Cowry Research remain cautiously optimistic:
• Over ₦283 billion worth of Nigerian Treasury Bills (NT-Bills) will mature this week, and with no NT-bill auctions scheduled, that liquidity could flow into equities, driving another round of gains.
• The ongoing dividend season, plus opportunities in undervalued stocks, are likely to keep investor interest high.
Insight for the InvestingPort Community:
This market rally is more than just numbers — it’s a reflection of investor psychology. Smart money is looking beyond today’s noise and betting on tomorrow’s value. In times of uncertainty, money flows to clarity — and right now, that clarity is showing up in oil, banking, and select consumer plays.
Let’s stay vigilant and prepared. There’s more to ride in this wave!
Despite regulatory turbulence and a shaky macroeconomic backdrop, the Nigerian equities market soared last week, handing investors a stunning gain of ₦1.75 trillion in market capitalisation. This marks a 2.4% week-on-week increase, pushing the total value of listed equities to an all-time high of ₦74.53 trillion.
⚠️ Regulatory Tension vs Market Resilience
Early in the week, the Central Bank of Nigeria (CBN) issued a directive restricting banks from:
• Paying dividends, and
• Making fresh investments in their offshore subsidiaries.
This initially triggered sell pressure across banking stocks. But by mid-week, the market shook off the panic. Investors, particularly institutional players, began hunting for undervalued opportunities, especially in key sectors with strong fundamentals.
The result? A surge in optimism that reignited buying momentum across the board.
Signs of Growing Confidence
The NGX All-Share Index (ASI) followed suit, as the Year-to-Date (YTD) return climbed to 14.8%, confirming the market’s bullish undertone.
Investor participation was also robust:
• Trading volume rose by 65.6%, with over 3.39 billion shares traded (vs. 2.05 billion in the previous week).
• Market value doubled, skyrocketing by 114.52% to ₦108.72 billion.
• Number of deals executed jumped to 95,625, up from 64,702 — a 47.8% increase.
These figures underscore renewed retail and institutional interest despite policy headwinds.
️ Sectoral Performance: Oil & Gas Leads the Charge
Gains were widespread across major sectors:
• Oil & Gas: +5.27%, led by Seplat and MRS as global oil sentiment improved.
• Commodities: +4.37%, driven by demand in FTN Cocoa and Presco.
• Banking: +3.6%, rebounding from initial selloffs as investors repositioned in names like GTCO and Stanbic IBTC.
• Insurance: +2.37%, with value-seekers eyeing underpriced insurers.
• Consumer Goods: +2.16%, supported by demand in Custodian and Ellah Lakes.
The only laggard was the Industrial Goods sector, down by 0.36%, due to profit-taking in RT Briscoe, Holt, Enamelware, and Dangote Cement.
What to Expect This Week
Analysts at Cowry Research remain cautiously optimistic:
• Over ₦283 billion worth of Nigerian Treasury Bills (NT-Bills) will mature this week, and with no NT-bill auctions scheduled, that liquidity could flow into equities, driving another round of gains.
• The ongoing dividend season, plus opportunities in undervalued stocks, are likely to keep investor interest high.
Insight for the InvestingPort Community:
This market rally is more than just numbers — it’s a reflection of investor psychology. Smart money is looking beyond today’s noise and betting on tomorrow’s value. In times of uncertainty, money flows to clarity — and right now, that clarity is showing up in oil, banking, and select consumer plays.
Let’s stay vigilant and prepared. There’s more to ride in this wave!