"Nigerian bourse sees sharp 77% fall in trading activity, while market capitalisation edges higher."

 

Investors on the Nigerian Exchange (NGX) Limited traded a total of 3.6 billion shares worth ₦112.2 billion across 138,250 deals over the past five trading days. This marks a significant 77.59% decline in transaction value compared to the previous week’s 17.49 billion shares exchanged for ₦500.7 billion in 142,082 deals.

Despite the steep fall in trading value, the market closed the week on a positive note. The NGX All-Share Index rose by 2.18% to finish at 134,452.93 points, while market capitalisation increased to ₦85.06 trillion, indicating investor confidence in select sectors.

The financial services sector maintained its lead in market activity, accounting for the highest volume and value of trades. A total of 2.13 billion shares valued at ₦47.29 billion changed hands in 57,121 transactions—making up 57.62% of total trade volume and 42.13% of total trade value.

Trailing behind were the agriculture and oil and gas sectors. Agriculture saw 273.69 million shares traded for ₦12.87 billion across 11,284 deals, while oil and gas recorded a turnover of 255.14 million shares worth ₦11.81 billion in 10,706 transactions.

Among individual stocks, Access Holdings, United Bank for Africa (UBA), and Japaul Gold and Ventures Plc led trading by volume. These three collectively accounted for 745.39 million shares valued at ₦19.46 billion, representing 20.19% of the total volume and 17.33% of the value for the week.

In terms of price performance, Initiative Plc topped the gainers' chart, rising by ₦6.10 to close at ₦16.13 from ₦10.03. Academy Press followed, climbing ₦2.31 to ₦9.31, while Nigerian Enamelware surged by ₦6.65 to end the week at ₦27.30.

Other notable gainers included Wema Bank, which appreciated by ₦3.80 to settle at ₦19.90, and Presco Plc, which rose by a substantial ₦285, closing at ₦1,550 per share.

On the flip side, several equities posted losses. Secure Electronic Technology dipped by ₦0.29 to ₦0.92, while Omatek Ventures declined to ₦1.24 from ₦1.63. Meyer Plc also shed ₦4.50 to finish at ₦16.50.

Additionally, Neimeth International Pharmaceuticals dropped to ₦6.50 from ₦8.05, and Associated Bus Company lost ₦1.06 to close at ₦4.59.

The week saw broader market optimism, with 60 stocks recording gains, an improvement from the previous week's 49. Still, the sharp decline in transaction value signals a cautious sentiment among investors, despite overall index growth.