NGX Weekly Wrap: Turnover Soars 17.3% Amid Profit-Taking Drag on Index
The Nigerian Exchange Limited (NGX) closed the trading week ending Friday, May 24, 2025, with a mixed performance as bullish turnover activity clashed with broader bearish sentiment on the equities index. Total transactions on the floor surged by 17.3%, with 3.93 billion shares valued at ₦74.81 billion exchanged in 105,220 trades, reflecting a significant uptick in market participation compared to the 2.61 billion shares worth ₦63.79 billion transacted in 77,593 deals the previous week.
Despite the impressive surge in volume and value, the NGX All-Share Index closed 0.62% lower at 109,028.62 points, while market capitalisation shed ₦200 billion, settling at ₦68.75 trillion. The divergence signals profit-taking activity and portfolio rebalancing by institutional investors, especially in bellwether stocks.
Financial Sector Dominates, Consumer Goods Gains Value Edge
The Financial Services sector maintained dominance, contributing 61.16% and 43.14% to the total turnover volume and value respectively, as 2.41 billion shares worth ₦32.27 billion changed hands across 44,570 deals. Fidelity Bank and Royal Exchange Plc were key drivers of this momentum.
Trailing behind, the Services industry recorded 442.99 million shares valued at ₦4.20 billion across 7,523 trades, while the Consumer Goods sector punched above its weight in value terms, trading 283.16 million shares worth ₦12.68 billion in 15,675 deals, largely driven by premium consumer brands.
Notably, Royal Exchange Plc, Fidelity Bank Plc, and Tantalizer Plc were the most active equities, jointly accounting for 1.61 billion shares valued at ₦8.90 billion, representing 41% of total weekly volume and 12% of aggregate market value.
Sectoral Indices Reveal Divergent Sentiment
While the broader index trended southward, select sectoral indices remained resilient. The NGX Consumer Goods Index outperformed with a 2.18% weekly gain, buoyed by renewed investor interest in FMCG blue-chips. Similarly, NGX Industrial Goods rose 0.72%, while NGX Insurance and NGX AFR Dividend Yield inched up 0.73% and 0.11%, respectively.
Conversely, other indices including NGX Banking, NGX Oil & Gas, and NGX Pension trended lower, reflecting cautious sentiment and tactical profit-booking.
Breadth Narrows as Losers Outpace Gainers
Market breadth tilted negative. While 52 stocks appreciated, this was lower than the 61 recorded the previous week. Meanwhile, 41 equities posted losses, up from 31 the week before, as 55 stocks remained unchanged.
Top gainers included:
- Cutix Plc (+21.92%, +₦0.57)
- Custodian Investment Plc (+21.45%, +₦3.85)
- Red Star Express Plc (+20.90%, +₦1.16)
- John Holt Plc (+20.63%, +₦1.30)
- Eunisell Interlinked Plc (+20.47%, +₦2.20)
On the flip side, key decliners were:
- Neimeth Pharmaceuticals (−₦0.63)
- Associated Bus Company (−₦0.46)
- Transcorp Hotels Plc (−₦24.50)
- NPF Microfinance Bank (−₦0.33)
- FTN Cocoa Processors (−₦0.31)
Strategic Listings Boost Market Depth
In a significant development for capital market deepening, the NGX admitted 229,316 units of Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF) to its Daily Official List. The listing, a result of the fund’s Q1 2025 scrip dividend, brings the total listed units to 1.056 billion, reinforcing investor appetite for infrastructure-backed securities.
Additionally, 6.84 billion shares of United Bank for Africa Plc were listed on the NGX following its successful Rights Issue. This increases UBA’s issued and fully paid-up shares to 41.04 billion, positioning the pan-African lender for enhanced capital adequacy and regional expansion.
Outlook:
While the uptick in transactions suggests latent investor interest, the downtrend in the index signals cautious reallocation, possibly ahead of macroeconomic triggers like May-end inflation figures or monetary policy guidance. Market watchers will also be tracking dividend adjustments and upcoming AGM declarations for clues on Q2 momentum.
For discerning investors, sector rotation into consumer goods and select industrials may offer defensive plays amid the ongoing recalibration.
