Three Stocks Record Over N19.8bn Turnover As Financial Sector Leads NGX

Three financial stocks—Access Holdings Plc, United Capital Plc, and United Bank for Africa Plc (UBA)—have led the equities sector of the Nigerian Exchange Limited (NGX) last week, collectively accounting for 72 percent of total market turnover.

The sector’s dominance continued, with a total of 1.068 billion shares valued at N19.8 billion traded in 21,001 deals.

The financial sector’s robust performance was strengthened by significant trading volumes in these top-performing stocks, with Access Holdings, United Capital, and UBA together contributing 433.794 million shares worth N10.274 billion in 8,790 deals, which represented 29.27 percent of the total equity turnover. This impressive contribution comes amid growing market interest and a shift towards financially strong institutions within the sector.

On the broader market front, the Nigerian Exchange experienced a positive close on the final trading day of last week, driven by strong bargain hunting. Notable price movements included a 7.9 percent increase in UBA shares, a 4.5 percent rise in GTCO, Flourmill’s significant jump of 22.9 percent, and WAPCO’s 9.4 percent gain. These gains propelled the market’s month-to-date return to +0.1 percent and year-to-date return to +30.7 percent. The all-share index gained 0.5 percent, ending the week at 97,722.28, while the market capitalisation increased to N59.215 trillion.

Despite positive performance in most sectors, the oil and gas and industrial goods indices experienced slight declines. The NGX oil and gas index fell by 0.29 percent, and the NGX industrial goods index decreased by 0.20 percent.

Following the financial sector in market activity, the oil and gas industry recorded a turnover of 103.143 million shares worth N11.351 billion in 8,200 deals, while the consumer goods sector ranked third, with 77.198 million shares valued at N2.845 billion in 4,266 deals. A total of 1.5 billion shares, valued at N38.9 billion, were traded in 44,795 deals during last week.

Market analysts, Mr. Ambrose Omordion, Chief Research Officer at Investdata Consulting Limited, noted that the NGX remains an attractive venue for investors who understand market dynamics such as buying low and selling high, especially as many stocks are currently undervalued with strong growth potential. Mr. Omordion also pointed out that sector rotation, fuelled by quarterly earnings reports, will continue to influence trading sentiment in the short term.

The market also saw a significant shift in exchange-traded products (ETPs), with 64,852 units valued at N7.9 million traded in 77 deals, up from 41,335 units worth N19.9 million in 115 deals the previous week. Bond trading, however, decreased, with only 17,905 units valued at N15.4 million transacted in 19 deals.

As investors await further macroeconomic indicators, including the upcoming consumer price index (CPI) data, the NGX remains a dynamic space for those seeking opportunities amid ongoing market volatility.