The Nigerian equities market commenced the trading week on a positive note on Monday, buoyed by renewed buying interest in select high-cap counters. The Nigerian Exchange Group (NGX) All-Share Index (ASI) appreciated by 0.29%, closing the session at 247,699.78 points. This upward movement successfully lifted the year-to-date (YTD) return to an impressive 59.18%, up from 58.72% recorded in the preceding week.
Market capitalisation mirrored the benchmark index’s positive trajectory, advancing by N1.04 trillion or 0.65% to settle at an astronomical N160.60 trillion. Financial market analysts note that while sentiment remained broadly upbeat, trading activity experienced a distinct contraction during the session, reflecting cautious positioning among institutional and retail market participants.
Key Drivers: Aradel and MTNN Lead Gainers
The session’s bullish momentum was primarily propelled by notable price appreciation in key bellwether equities. ARADEL spearheaded the value chart and gained 5.38% to close at N1,570.00, drawing heavy investor capital worth N7.59 billion. Telecommunications giant MTNN also provided crucial support, advancing by 2.45% to close at N832.90, while INTBREW added 3.02% to its valuation.
Conversely, the market’s broader advance was tempered by profit-taking activities and sell-offs in other counters. Equities such as CHAMPION (-8.79%), WAPIC (-7.08%), and JAIZBANK (-6.36%) weighed heavily on the downside, dragging market breadth into negative territory.
Volume Contracts Amid Cautious Trading
Despite the positive movement in index points and capitalisation, overall market liquidity contracted significantly. Total volume traded plummeted by 81.81% to settle at 407.85 million units, down from previous highs, while total transaction value shrank by 62.88% to N27.25 billion across 52,322 deals.
In terms of activity volume, ACCESSCORP emerged as the most traded stock by volume, accounting for 40.04 million units despite recording a marginal price dip of 0.83% to close at N29.75. Market breadth remained firmly negative at a ratio of 0.25x, highlighting that market decliners significantly outpaced advancers. A total of forty-four (44) equities closed lower, eclipsed by only eleven (11) advancers. Caverton led the losers’ chart with a steep 10.00% decline, whereas Zichis emerged as the top gainer with a 9.47% surge.
NASD OTC Market and Macroeconomic Updates
Away from the main board, the NASD Over-the-Counter (OTC) market also registered gains. The NASD Security Index (NSI) appreciated by 1.68% to close at 4,488.00 points, pushing market capitalization to N2.69 trillion and lifting the YTD return to 26.65%. Trading activity on the NASD platform surged, with volume jumping 131.39% to 385,170 units valued at N18.05 million.
On the macroeconomic front, currency markets showed relative stability. The Nigerian Foreign Exchange Market (NAFEM) appreciated marginally by 0.05% to close at N1,320.56/US$1. Meanwhile, global economic indicators pointed to a recovery in the Eurozone, where Q2 GDP rose by 0.6%, while crude oil prices remained under close scrutiny following geopolitical developments in the Middle East, with Brent crude holding near $95.64 per barrel.
