The financial services sector continued to drive the Nigerian Exchange (NGX) last week, despite a significant drop in overall turnover. Trading data showed it accounted for 59.28 per cent of equity volume and 27.23 per cent of value, with 1.355 billion shares worth ₦24.59 billion exchanged in 59,553 deals.
Overall market turnover declined 72.8 per cent in volume and 21.8% in value week-on-week, to 2.286 billion shares worth ₦90.28 billion across 138,177 deals. Despite this contraction, the NGX All-Share Index rose 2.37 per cent to close at 146,988.04 points, and market capitalisation increased to ₦93.296 trillion, indicating sustained investor interest.
Daily Market Trends
The week commencing Monday, October 6, saw active trading on the Nigerian Exchange. Monday’s activity involved 519.90 million shares worth ₦14.54 billion across 35,467 deals, with financial equities like Fidelity Bank, UBA, and Access Holdings leading the charge. Tuesday followed with 507.40 million shares traded at ₦24.28 billion, fueled by renewed interest in top-tier banks. Midweek turnover on Wednesday, October 8, edged up to 525.70 million shares valued at ₦13.59 billion, the financial sector remaining prominent. Thursday, October 9, saw a dip in volume to 346.95 million shares, but trading value surged to ₦27.42 billion, driven by substantial transactions in select financial and oil & gas stocks. The week concluded on Friday, October 10, with 385.58 million shares valued at ₦10.45 billion, as slight profit-taking in banking tempered gains.
Sectoral Performance
Despite its dominance, the financial sector’s performance didn’t fully translate into price increases; the NGX Banking Index fell 0.41 per cent week-on-week due to minor sell-offs in major tier-one banks after previous rallies. However, other key indices performed well: the NGX Premium Index rose 7.19 per cent, the Industrial Goods Index increased by 4.23 per cent, and the Insurance Index grew by 3.69 per cent. UBA, Zenith Bank Plc, GTCO Plc, and Stanbic IBTC Holdings experienced dividend adjustments during the week. Overall, market sentiment remained positive, bolstered by gains in non-bank equities.
Top Performers and Underperformers
Sovereign Trust Insurance Plc led weekly gains, rising 16.73 per cent to close at ₦3.21 per share. Other significant gainers were Omatek Ventures Plc (+12.30%), AXA Mansard Insurance Plc (+11.81%), Chams Holding Plc (+11.69%), and Eunisell Interlinked Plc (+11.39%).
Conversely, LivingTrust Mortgage Bank Plc was the top decliner, falling by 14.61 per cent. Neimeth International Pharmaceuticals Plc and UH Real Estate Investment Trust also experienced significant losses, declining by 10.96 per cent and 9.98 per cent, respectively.
Market Forecast
Analysts anticipate that the financial services sector will continue to drive liquidity on the Exchange, fueled by sustained investor interest in bank stocks and upcoming Q3 earnings reports. However, profit-taking in top-tier stocks may cause short-term market fluctuations.
The financial sector remains a key driver of momentum in Nigeria’s capital market, as the NGX sustains growth in market capitalisation, and investor confidence remains strong.
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