November 1, (THEWILL) – The Nigerian Exchange Limited (NGX) recorded a strong improvement in trading activity during the week, as investors exchanged 7.619 billion shares valued at N637.826 billion, compared with 2.024 billion shares worth N110.773 billion traded in the preceding week.
The increase represented a 276.43 percent rise in trading volume and a 475.88 percent jump in transaction value, reflecting significantly higher participation in the equity market during the period.
The Financial Services Industry dominated trading activity by volume, accounting for 6.990 billion shares valued at N573.492 billion in 85,998 deals. The sector contributed 91.75 percent of total equity turnover volume and 89.91 percent of its value, highlighting the concentration of transactions in financial stocks.
The Consumer Goods Industry followed with 164.650 million shares worth N7.201 billion, while the Services Industry ranked third, recording 93.278 million shares valued at N1.567 billion.
Trading in the three most active equities by volume First HoldCo Plc, Guaranty Trust Holding Company Plc and United Bank for Africa Plc accounted for 6.096 billion shares valued at N544.438 billion in 27,001 deals. Their combined transactions represented 80.02 percent of total equity turnover volume and 85.36 percent of turnover value.
The concentration of trading in these three financial institutions further reinforced the dominance of the Financial Services Industry during the week. Their combined contribution accounted for more than four-fifths of total equity turnover, indicating that activity was heavily driven by a small group of stocks.
On the performance front, the NGX All-Share Index and market capitalisation appreciated by 2.86 percent to close at 254,299.49 points and N165.114 trillion, respectively. This represented a recovery from the previous week’s closing levels of 247,222.27 points and N160.519 trillion.
The positive performance of the benchmark indicators was supported by an improvement in market breadth. Thirty-three equities appreciated in price, higher than the 20 recorded in the preceding week. Meanwhile, 48 equities depreciated, down from 55 previously, while 65 remained unchanged, compared with 71 in the previous week.
The figures indicate an improvement in investor sentiment, with more stocks recording gains and fewer declining during the period. However, the number of decliners remained higher than gainers, suggesting that the recovery was not evenly distributed across the market.
Sectoral performance was largely positive, as most indices closed higher. However, the NGX Main Board, NGX Consumer Goods, NGX Banking, NGX Insurance, NGX Growth and NGX Commodity indices recorded declines of 0.11 percent, 1.70 percent, 3.42 percent, 2.13 percent, 1.02 percent and 0.38 percent, respectively. The NGX Consumer Goods Index also recorded a marginal decline of 0.02 percent.
The NGX Banking Index recorded the steepest decline among the listed sectoral indices, falling by 3.42 percent, despite the Financial Services Industry accounting for the largest share of trading activity. This divergence suggests that the high turnover in financial stocks did not necessarily translate into positive price performance across the banking sector.
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Top Gainers
- Dangote Cement Plc appreciated by 27.81 percent (N1,111.00 to N1,420.00).
- Honeywell Flour Mills Plc gained 25.98 percent (N17.90 to N22.55).
- UPDC Real Estate Investment Trust rose by 20.57 percent (N17.50 to N21.10).
- Sovereign Trust Insurance Plc advanced by 20.51 percent (N1.95 to N2.35).
- Eterna Plc gained 9.90 percent (N38.90 to N42.75).
Top Decliners
- Caverton Offshore Support Group Plc fell by 25.00 percent (N4.80 to N3.60).
- Livestock Feeds Plc declined by 21.99 percent (N17.05 to N13.30).
- Austin Laz & Company Plc shed 17.54 percent (N2.85 to N2.35).
- First HoldCo Plc lost 17.31 percent (N144.10 to N119.15).
- Guinea Insurance Plc declined by 17.20 percent (N0.93 to N0.77).
Trading in the bond market also improved during the week, with 2.294 million units valued at N2.195 billion exchanged in 56 deals. This compared with 234,682 units worth N226.306 million traded in the preceding week. The increase represented a substantial rise in both bond market volume and value, indicating stronger activity in the segment.
Overall, the market closed the week with stronger equity turnover, improved benchmark performance and a better balance between advancing and declining stocks. However, the concentration of trading in a few financial equities and the weakness recorded in the banking index highlight differences between market activity and price performance.
Investors will continue to monitor activity in the financial sector, corporate earnings and movements across sectoral indices for indications of the market’s direction in the coming week. Sustained buying interest across a broader range of equities could strengthen the recovery, while continued weakness in banking and other declining sectors may temper further gains.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
