By Our Reporter
The Nigerian Exchange Limited (NGX) has commenced 2025 on an impressive note, with the All Share Index, ASI, reflecting a 1.42 percent week-on-week (WoW) gain, and closing at 103,586.33 points. This performance also led to a significant rise in the market capitalisation, which rose by N402 billion, from N62.763 trillion to N63.165 trillion.
Operators have attributed the gains to a strong buying interest across key sectors, particularly the insurance and consumer goods sectors. They believe Investors are bracing themselves in anticipation of potential earnings growth and interim dividend announcements for 2024.
Besides the market capitalisation of N402 trillion weekly gain, the market also recorded an impressive N1.25 trillion in value.
The market also witnessed robust trading activity, with a remarkable 88.8 percent increase in weekly traded volume, totaling 2.62 billion shares valued at N69.7 billion. The number of deals also appreciated by 43.5 percent, reflecting strong investor participation.
Key stocks contributing to this rally included BUA Foods (+5.1 percent), MTNN (+3.1 percent), and Lafarge WAPCO (+3.6 percent). These gains contributed in pushing the Year-To-Date (YTD) returns to a modest 0.6 percent.
Sector-wise, four out of the five major indices closed higher. The NGX-Insurance index took the lead with a remarkable 26.9 percent gain, driven by price appreciation in companies such as Prestige Assurance, Sovereign Trust, and Coronation Insurance.
The NGX-Consumer Goods index also appreciated by 2.2 percent, supported by positive feelings around companies like Tantalizers Plc. Also, the NGX-Banking and NGX-Industrial Goods indices rose by 0.6 percent and 0.5 percent, respectively, with notable performances from stocks like Multiverse, Honeywell Flourmills, Sterling Bank, and Wema Bank.
On the flip side, the NGX-Oil and Gas index was the only sector to record a loss, shedding 0.5 percent, with sell-offs in stocks such as Total, Eterna, and Oando.
On the whole, this positive momentum to the year underscores the resilience of Nigerian equities, especially in sectors with strong fundamentals, despite persisting economic challenges.