All-Share Index jumps 0.90% to 241,298 points as market breadth improves, while Oil & Gas and Banking stocks lead broad-based buying…….
Nigeria’s equities market closed the week on a strong note on Friday, with investors pushing the benchmark index sharply higher as renewed buying interest swept across banking, oil and gas, and commodity stocks.
The NGX All-Share Index (ASI) gained 0.90% to close at 241,298.47 points, compared with 239,156.09 points recorded in the previous session. The increase translated to a gain of 2,142.38 points in one trading day.
The rally also lifted total market capitalisation by about N1.38 trillion, from N154.44 trillion to N155.83 trillion, while the market’s year-to-date return climbed to 55.06%.
Friday’s performance was particularly significant because the advance was much broader than the more selective recovery recorded a day earlier, when banking stocks accounted for much of the market’s improvement.
The latest rally also followed renewed investor interest after FTSE Russell confirmed that Nigeria would be reclassified from “Unclassified” to Frontier Market status effective September 21.
Seplat Energy emerged as the standout large-cap performer of the session, rising by the maximum permitted 10% to N12,320.60 from N11,200.60.
The stock added N1,120 per share in a single trading session, helping to propel the NGX Oil & Gas Index higher.
The sector index jumped 4.73% to 5,185.35 points, although gains were not evenly distributed across energy stocks.
While Seplat surged, TotalEnergies Marketing Nigeria suffered the opposite fate, falling 10% to N576.00.
Oando also declined by 1.78% to N33.10, while Eterna shed 0.56% to close at N35.55.
Banking stocks, meanwhile, recorded a much more consistent performance, with nearly all the major names ending the session in positive territory.
FirstHoldCo led the banking rally, climbing 7.41% to N145.00. The stock has now gained from N129.00 on August 26 to N145.00 in just two trading sessions, representing an increase of roughly 12.4%.
Jaiz Bank advanced 3.25% to N7.95, while Access Holdings gained 2.61% to N29.50.
Wema Bank rose 2.50% to N28.70, Fidelity Bank added 1.32% to N19.20, and Sterling Financial Holdings gained 1.31% to N7.75.
Zenith Bank increased 1.26% to N121.00, GTCO rose 0.78% to N129.00, FCMB edged up 0.45% to N11.05, while UBA gained 0.22% to N45.90.
The broad performance pushed the NGX Banking Index up 2.34%.
33 stocks gain as market breadth improves
The overall market breadth provided another indication that Friday’s rally was more widespread than the previous session.
A total of 33 stocks closed higher, compared with 19 decliners.
That was a sharp improvement from Thursday, when 20 gainers were recorded against 39 losers.
Transcorp Hotels was among the strongest performers outside the banking sector, jumping 9.76% to N265.50, while Guinness Nigeria gained 2.34%.
Omatek also continued its recent upward run, rising 9.49% to N1.50 from N1.37.
DAAR Communications advanced 9.42% to N1.51, while University Press gained 8.57% to N5.70.
At the other end of the market, TotalEnergies Marketing Nigeria recorded the biggest decline, losing 10%.
Haldane McCall dropped 8.78% to N3.74, eTranzact fell 8.62% to N13.25, Austin Laz declined 7.41% to N2.50, while AVA Capital shed 7.14% to N6.50.
Oil and gas, commodities outperform
Friday’s sectoral performance was dominated by gains in energy and commodity-related stocks.
The NGX Oil & Gas Index rose 4.73%, making it the best-performing sector of the session.
The Commodity Index followed with a 3.34% increase to 1,743.84 points, while the Banking Index gained 2.34% to 2,544.92 points.
The Insurance Index also finished higher, advancing 0.82% to 1,079.54 points.
Consumer Goods stocks, however, remained under pressure, with the sector index slipping 0.19% to 4,012.83 points.
The Industrial Index was largely unchanged at 10,378.74 points.
More shares traded despite lower turnover
Trading activity was mixed during the session.
Volume increased by 21.04% to 605.17 million shares, indicating a significant increase in the number of shares exchanged.
However, the value of transactions fell by 15.01% to N29.87 billion.
The number of deals also declined 4.72% to 38,421.
The combination of higher volume but lower turnover suggests that a larger number of shares changed hands even as the total naira value of transactions fell.
NGX ends week higher
Friday’s rally helped the market recover from losses recorded earlier in the week and ensured that the NGX ended the period in positive territory.
Compared with August 21, when the ASI stood at 239,351.16 points, Friday’s close of 241,298.47 points represents a weekly gain of approximately 0.81%.
Market capitalisation also increased by about N1.29 trillion over the same period, rising from N154.53 trillion to N155.83 trillion.
Some stocks also recorded notable reversals during the final two trading sessions.
DAAR Communications, for instance, fell 8.61% on Thursday before rebounding 9.42% on Friday. Fidson Healthcare dropped 9.98% on Thursday but recovered 1.58% the following day.
NEM Insurance also reversed part of its previous decline, rising 4.21% to N30.95 after losing 7.19% in the preceding session.
Omatek was another notable mover, climbing from N1.25 to N1.50 across Thursday and Friday, representing a two-session gain of about 20%.
What Friday’s rally means for investors
The final session of the week points to a noticeable improvement in investor sentiment, with buying interest spreading beyond the limited pockets of demand seen earlier in the week.
The market’s recovery also comes at a potentially important period for Nigerian equities following FTSE Russell’s decision to move the country into its Frontier Market classification.
With the ASI now above 241,000 points and the market’s year-to-date return above 55%, investors will be watching closely to see whether the renewed buying interest can extend into the coming sessions.
For now, Friday’s performance has provided a strong finish to a volatile week, with banking and energy stocks once again showing their ability to influence the direction of the broader Nigerian equities market.
