Activity on the floor of the Nigerian Exchange Limited (NGX) slowed sharply last week as trading was limited to four days ahead of the Easter public holidays. With the federal government declaring Friday and Monday as work-free days, investor participation fell noticeably, prompting a decline in overall market activity.
Total turnover for the week dropped to 2.856 billion shares, valued at N113.597 billion. This represents a significant decrease from the 3.950 billion shares worth N201.312 billion that exchanged hands in the previous full trading week. Analysts suggest that the shortened trading schedule and cautious investor sentiment were key factors behind the slowdown.
Despite the dip, the financial services sector remained the dominant force on the NGX. Banks led the market, contributing over 63 percent of total equity turnover, with heavy activity in Wema Bank and Access Holdings. The services and ICT sectors followed, but their trading volumes and values were far behind the banking sector.
Corporate actions also shaped the week’s trading dynamics. FCMB Group Plc and VFD Group Plc successfully listed billions of additional shares through a public offer and a rights issue, respectively. FCMB’s public offer achieved a remarkable 144.89 percent subscription rate, highlighting strong investor confidence despite the general slowdown. Meanwhile, Universal Insurance filed for a rights issue of more than 2.6 billion shares, joining the wave of capital-raising initiatives across the market.
Even with the decline in traded volumes, market indicators held steady. The NGX All-Share Index rose 0.39 percent to close at 201,698.89 points, while total market capitalization increased to N129.806 trillion. However, market breadth remained weak, with 57 equities declining against only 29 gainers, showing that gains were largely driven by top-performing large-cap stocks rather than broad-based market strength.
source: punch