Nigerian equities staged a strong rebound in the week ended August 28, with several stocks posting significant gains after two consecutive weeks of losses. The NGX All-Share Index rose by 1,947.31 points, representing a 0.81% increase, to close at 241,298.47 points, while market capitalisation climbed 0.84% to N155.83 trillion. University Press Plc emerged as the best-performing Nigerian stock, jumping 18.75% from N4.80 to N5.70 per share.
The market recovery was supported largely by renewed buying interest in banking, oil and gas, and value stocks following FTSE Russell’s decision to proceed with Nigeria’s reclassification from “Unclassified” to “Frontier Market” status. FirstHoldCo gained 11.58% to N145, Seplat Energy rose 10% to N12,320.60, while Red Star Express and Transcorp Hotels advanced 9.86% and 9.76% respectively. Access Holdings also recorded a strong 9.26% gain to close at N29.50.
Other stocks that featured among the top 10 best-performing Nigerian stocks were Cornerstone Insurance, which gained 9.18% to N5.35; UPDC, up 5.97% to N3.55; Omatek Ventures, which rose 5.63% to N1.50; and Abbey Mortgage Bank, gaining 5.59% to N8.50. The rally was not broad enough to lift the entire market, however, as 55 equities declined during the week while 24 gained and 68 remained unchanged. Trading activity also slowed, with 2.51 billion shares worth N123.22 billion changing hands in 173,561 deals.
The oil and gas sector emerged as the strongest sectoral performer, with the NGX Oil & Gas Index rising 4.54%, while the Banking Index gained 2.89% and the NGX Commodity Index increased 3.31%. However, investors saw sharp declines in several stocks, led by International Energy Insurance, which plunged 26.61% to N2.84. Fidson Healthcare fell 17.69%, Caverton Offshore Support Group dropped 15.15%, while Zichis Agro Allied Industries and Austin Laz & Company declined 14.71% and 11.97% respectively. TotalEnergies Marketing Nigeria also lost 10%, despite the broader strength in the oil and gas sector.
Despite the weekly recovery, the NGX remained down 1.62% for August, although its year-to-date return stood at a strong 55.06%. The performance of University Press, FirstHoldCo, Seplat Energy and other leading gainers points to renewed investor appetite for selected Nigerian equities, particularly in banking and energy. However, the contrasting performance across sectors shows that investors remain selective, with stock-specific factors continuing to influence market movements.
source: nairametrics
