The Nigerian Exchange (NGX) closed Thursday's trading session with a market capitalization gain of N191.77 billion, reaching N57.619 trillion, even as the market breadth turned negative with more decliners than advancers. The All-Share Index (ASI) appreciated by 0.34% to settle at 100,974.21 points, up from 100,633.39 points at the previous close.
The positive performance was largely driven by gains in MTN Nigeria Communications, which rose by 1.76% to N207.00 per share, and other heavyweight stocks such as Airtel Africa, which gained 0.13% to N2,281.00, and Dangote Cement, which appreciated by 0.18% to N389.00. These gains offset losses in some banking and consumer goods stocks, resulting in a mixed session where 29 stocks declined against 20 that advanced.
Market Indices and Sectoral Performance
The NGX All-Share Index, which tracks the performance of all listed equities, closed at 100,974.21 points, reflecting a year-to-date return of 32.15%. The market capitalization, which represents the total value of all listed companies, stood at N57.619 trillion, up from N57.427 trillion on Wednesday.
Sectoral indices were mixed: the NGX Banking Index fell by 0.67%, the NGX Consumer Goods Index declined by 0.12%, and the NGX Insurance Index dropped by 0.53%. Conversely, the NGX Oil & Gas Index rose by 0.34%, and the NGX Industrial Goods Index gained 0.15%. The NGX Pension Index also appreciated by 0.35%.
Trading Activity and Investor Sentiment
Trading activity was robust, with a total of 468.08 million shares exchanged in 10,051 deals, valued at N8.23 billion. This represents an increase in trading volume and value compared to the previous session, indicating sustained investor interest despite the negative breadth.
Investor sentiment, as measured by the market breadth, was negative, with 29 stocks recording price declines against 20 that advanced. This divergence between the index performance and market breadth suggests that the gains were concentrated in a few large-cap stocks, while the broader market saw more losses.
Top Gainers and Losers
Among the top gainers, MTN Nigeria led with a 1.76% appreciation to N207.00, followed by Airtel Africa (0.13% to N2,281.00), Dangote Cement (0.18% to N389.00), and BUA Cement (0.36% to N139.00). Other gainers included Stanbic IBTC Holdings (0.37% to N66.00) and Guaranty Trust Holding Company (0.10% to N50.00).
On the losing side, NASCON Allied Industries fell by 9.91% to N41.80, followed by NEM Insurance (9.09% to N10.00), and International Breweries (6.67% to N4.20). Other notable decliners included FBN Holdings (1.90% to N25.80) and Zenith Bank (0.71% to N42.00).
Market Outlook and Analyst Views
Analysts at Cowry Asset Management noted that the market's positive close, despite negative breadth, reflects the influence of large-cap stocks and the ongoing rotation into fundamentally sound equities. They expect the market to remain volatile in the short term as investors digest corporate earnings and macroeconomic indicators.
According to market analysts, the NGX's year-to-date return of 32.15% is among the best in Africa, driven by reforms in the foreign exchange market and improved investor confidence. However, they caution that profit-taking could emerge at these levels, especially if global oil prices remain under pressure.
Conclusion
In summary, the Nigerian equities market ended Thursday on a positive note, with a N191.77 billion gain in market capitalization, even as the number of declining stocks outnumbered advancers. The performance was underpinned by gains in MTN and other blue-chip stocks, while the broader market showed signs of caution. Investors will be watching for further corporate announcements and policy developments to gauge the market's direction in the coming sessions.
