Nigerian Stock Market Closes Week on High Note with 3.84% Gain
The Nigerian stock market concluded the trading week on a positive trajectory, registering a significant 3.84% increase as investor attention centered on stocks within the Financial Services and Information and Communication Technology (ICT) sectors. This upward movement reflects renewed confidence and strategic buying activities in key market segments.
Market Indices Show Substantial Growth
At the close of trading for the week ending Friday, February 7, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) advanced to 171,727.49 points, up from 165,171.32 points recorded in the previous week. This notable rise underscores the market's resilience and investor optimism.
Market capitalization also experienced a robust increase, climbing by N4.13 trillion to reach N110.235 trillion, compared to N106.104 trillion the week before. This growth highlights the expanding value of listed companies and the overall health of the capital market.
Sectoral Performance Breakdown
The Financial Services sector dominated trading activity, contributing significantly to the market's positive close. This sector recorded 2.188 billion shares valued at N50.459 billion across 94,005 deals, accounting for 56.68% of total turnover volume and 39.24% of total value.
The Services sector followed with 466.771 million shares worth N4.495 billion traded in 18,526 deals. Meanwhile, the ICT sector posted 377.800 million shares valued at N9.049 billion in 25,653 deals, demonstrating strong investor interest in technology-driven companies.
In contrast, the NGX Insurance Index was the sole sector to decline, falling by 2.33% during the week. This dip indicates selective profit-taking or reduced demand in the insurance segment.
Weekly Trading Snapshot
Throughout the week, a total of 3.860 billion shares worth N128.581 billion were exchanged in 240,463 deals. Trading in the top three equities by volume—Chams Holding Company Plc, Access Holdings Plc, and Universal Insurance Plc—accounted for 664.942 million shares valued at N6.801 billion in 15,161 deals. This represented 17.23% of total volume and 5.29% of total value, highlighting the concentration of activity in these key stocks.
Top Gainers and Decliners
The gainers' table was led by several companies posting impressive returns. R T Briscoe Plc topped the list with a 60.69% increase, closing at N12.63 from N7.86. Other notable gainers included Zichis Agro Allied Industries Plc (60.38%), Abbey Mortgage Bank Plc (59.04%), and Union Dicon Salt Plc (49.14%).
On the decliners' side, DEAP Capital Management & Trust Plc experienced the largest drop, falling 27.37% to N6.82 from N9.39. UH Real Estate Investment Trust followed with a 26.99% decline, while Red Star Express Plc and UPDC Real Estate Investment Trust also recorded significant losses.
Investor Sentiment and Market Outlook
Investors demonstrated a clear preference for high-volume stocks in the Financial Services and ICT sectors, seeking steady gains and long-term growth opportunities. This focus suggests a strategic approach to portfolio management amid evolving market conditions.
The overall positive performance of the Nigerian stock market this week signals potential for continued growth, driven by sector-specific strengths and broader economic factors. Market participants will be closely monitoring upcoming developments to gauge future trends.
