Equity
Oil, Gas sector tops NGX gainers’ chart with 9.43% rise
BY: Amarachi Okonkwo
The oil and gas sector led the gainers’ chart on the Nigerian Exchange Limited (NGX) last week with a 9.43 per cent increase, driven by strong buying interest in Aradel Holdings Plc and Oando Plc.
Market data showed that sustained investor demand for energy stocks pushed the sector to the top of the performance table, reflecting renewed confidence in the oil and gas segment.
The industrial goods sector followed with a 3.89 per cent gain, supported by improved investor sentiment towards Premier Paints Plc, Lafarge Africa Plc, and Dangote Cement Plc.
Similarly, the consumer goods sector recorded a 1.12 per cent increase, buoyed by buying interest in PZ Cussons Nigeria Plc and Cadbury Nigeria Plc.
The banking sector also posted marginal gains of 0.24 per cent following renewed investor interest in Stanbic IBTC Holdings Plc, Zenith Bank Plc, and Guaranty Trust Holding Company Plc.
However, the insurance sector declined by 1.88 per cent during the week, weighed down by sustained selling pressure in AXA Mansard Insurance Plc, Universal Insurance Plc, and Cornerstone Insurance Plc.
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As a result, the NGX All-Share Index (ASI) advanced by 2.15 per cent to close at 196,968.15 points. Total market capitalisation also rose to N126.43 trillion from N123.76 trillion recorded in the preceding week.
The increase represents a market gain of N2.67 trillion, pushing the year-to-date return to 26.58 per cent.
Despite the positive performance of key sectors, market breadth remained negative as 44 stocks gained while 58 recorded losses, indicating that declines across a larger number of equities tempered the broader market rally.
Trading activity weakened during the week, with volume and turnover dropping by 32.52 per cent and 9.51 per cent week-on-week respectively.
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Nonetheless, the number of deals improved slightly by 0.35 per cent. Investors traded about 3.7 billion shares valued at N177.76 billion in 371,317 deals during the period.
Among the top performers, FTG led the gainers’ chart with a 58.5 per cent surge. Premier Paints Plc followed with a 32.7 per cent increase.
Eterna Plc rose by 28.7 per cent, while NGX Group Plc gained 21.7 per cent. UACN Plc also appreciated by 20.6 per cent, reflecting strong investor demand.
On the losers’ chart, MCNichols Plc topped the list after shedding 24.4 per cent. It was followed by Mecure Industries Plc, which declined by 18.9 per cent.
Multiverse Mining and Exploration Plc fell by 18.7 per cent, while Jaiz Bank Plc dropped 18.4 per cent. Omatek Ventures Plc also lost 15.4 per cent amid profit-taking and sustained selling pressure.
Meanwhile, developments in the foreign exchange market indicated a shift in market dynamics, with the parallel market trading at a slight discount compared to the official window.
During the week, the naira weakened against the United States dollar across both segments of the foreign exchange market. The local currency depreciated by 2.19 per cent in the official market to close at N1,393.26/$.
At the parallel market, the naira also slipped by 2.14 per cent to about N1,391/$, temporarily reversing the usual premium associated with the unofficial market.
Nigeria’s external reserves, however, recorded a modest improvement, rising by 0.75 per cent to $49.88 billion, supported by increased foreign exchange inflows.
The development suggests a gradual strengthening of the country’s foreign exchange buffers despite continued pressure on the local currency.
