NGX Weekly Review: Transaction Value Plunges by 56% Amid Holiday-Shortened Trading Week, But Market Cap Gains 2.57%
Nigeria’s equities market posted a mixed performance in the first week of June 2025, as total market turnover nosedived sharply by 56.4%, even as the All-Share Index (ASI) rallied 2.57% to close at 114,616.75 points, lifting market capitalisation to ₦72.275 trillion.
The week—curtailed by the Eid-el-Kabir holidays observed on Friday, June 6, and Monday, June 9—witnessed only four trading sessions. Yet, despite the drop in transaction value, investor sentiment remained broadly positive, with 53 gainers, and the benchmark index inching higher.
Volume vs Value: A Tale of Divergence
Market participants executed 64,156 trades, exchanging 3.214 billion shares valued at ₦76.35 billion. This was notably down from the prior week’s 3.794 billion shares worth ₦119.39 billion in 89,636 deals, a reflection of softer institutional participation and the holiday-induced lull.
Insight: The steep contraction in transaction value—over ₦43 billion—suggests cautious positioning by both retail and institutional investors ahead of the festive break, with many reallocating capital toward short-term fixed income and defensive sectors.
Sectoral Performance: Financials Still Dominant
The Financial Services sector once again underpinned activity, accounting for 71.96% of total turnover volume and 68.43% of total value. The sector recorded 2.313 billion shares traded at ₦52.24 billion across 27,326 deals, reinforcing its role as the market’s liquidity anchor.
Trailing behind was the ICT sector, with 301.996 million shares valued at ₦5.03 billion, while Consumer Goods came in third with 144.538 million shares worth ₦5.63 billion.
Notably, Fidelity Bank Plc, Legend Internet Plc, and Guaranty Trust Holding Company Plc emerged as the most traded equities, jointly accounting for 48.06% of total volume and 45.12% of total transaction value.
Index Overview: Broad-Based Gains Amid Selective Caution
All sectoral indices ended the week in the green, with the exception of the NGX ASeM Index, which closed flat. The continued rise in the All-Share Index is a sign of rotational momentum, as investors shift focus across growth, mid-cap, and value plays.
- Top gainers included:
- Oando Plc (+25.77%)
- Lasaco Assurance (+21.62%)
- Multiverse Mining (+20.39%)
- Cornerstone Insurance (+19.51%)
- First Holdco (+17.60%)
- Oando Plc (+25.77%)
- Top decliners were:
- Associated Bus Company (–₦0.55)
- Julius Berger (–₦18.50)
- Legend Internet (–₦0.82)
- Livestock Feeds (–₦1.15)
- E-Tranzact International (–₦0.80)
- Associated Bus Company (–₦0.55)
The spread of winners and losers suggests a market in stock-picking mode, with volatility driven more by corporate-specific fundamentals and sector rotations than broad macro sentiment.
Bond Market Update: FGN Savings Bond Listing Bolsters Fixed-Income Options
In a positive development for yield-seeking investors, the May 2025 Issue of the Federal Government of Nigeria (FGN) Savings Bond was officially listed on the NGX on Thursday, June 5. This adds another liquidity option to the market and provides retail investors access to government-backed instruments.
Expert View: As equities remain volatile, expect more strategic capital flow into savings bonds and other fixed-income assets, especially with the Central Bank expected to maintain a hawkish interest rate posture amid inflationary pressures.
Outlook: Eyes on Inflation Data and Corporate Earnings Season
With inflation figures and Q2 corporate earnings around the corner, investors are likely to remain cautious but opportunistic. Shortened trading weeks tend to mask underlying momentum, but the resilience of the ASI and sustained sectoral breadth suggest undercurrents of bullish sentiment.
Market watchers will also be keen to assess policy directions from the Central Bank and the fiscal authorities, especially on FX reforms, debt management, and capital inflows.
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