Trading activity on the Nigerian Exchange (NGX) surged in volume but saw a dip in value last week, reflecting shifting dynamics in investor sentiment. A total of 8.74 billion shares valued at ₦134.58 billion ($116 million*) exchanged hands across 180,290 deals, marking a 44% week-on-week rise in traded volume. However, the total transaction value fell by 11.3%, down from ₦149.76 billion ($129 million) the prior week, as investors appeared to favor lower-priced stocks.
Financial services firms dominated market activity, contributing 85.7% of total traded shares and 52.7% of value. The sector saw 7.48 billion shares worth ₦70.98 billion change hands. Agriculture emerged as the second most active industry, with 201.9 million shares valued at ₦7.86 billion traded, followed by the services sector at 191.92 million shares worth ₦2.48 billion. Insurance companies Linkage Assurance, Consolidated Hallmark Holdings, and Universal Insurance collectively accounted for 3.2 billion shares traded—36.6% of the week’s total volume.
Despite mixed sector performances, the benchmark NGX All-Share Index climbed 3.18% to close at 145,754.91 points, while market capitalization rose to ₦92.22 trillion ($79.5 billion). Eight sub-indices, including banking and commodities, recorded declines ranging from 0.14% to 7.91%, contrasting with broader market gains.
Market breadth improved slightly: 66 stocks appreciated compared to 54 the previous week, while decliners fell to 41 from 49. Insurance firms dominated the gainers’ list, with Mutual Benefits Assurance leading at a 60.4% surge. Conversely, Livingtrust Mortgage Bank topped decliners, shedding ₦1.59 ($0.0014) per share.
In parallel developments, the NGX launched a Non-Interest Finance Board to expand access to Sharia-compliant investment products. The platform will list equities, bonds, and ETFs adhering to Islamic finance principles, part of efforts to diversify Nigeria’s capital markets and attract ethical investors. Separately, ₦100.7 billion ($87 million) in federal savings bonds maturing in July 2025 began trading on August 6.
The week’s activity signals continued retail investor engagement amid evolving regulatory initiatives to enhance market depth. While trading volumes rebounded, the declining transaction value suggests caution persists as investors balance opportunities in growth sectors against broader economic headwinds.
*Currency conversions based on approximate exchange rate of ₦1,160/USD as of August 2023
