Trading on the Nigerian Exchange (NGX) last week reflected a market in consolidation mode, marked by fluctuating liquidity, shifting risk appetite, and gradual improvement in market capitalisation.
While volumes and turnover oscillated throughout the week, the steady rise in market value signals underlying bullish resilience despite cautious investor positioning.
Monday: Strong Opening, Broad Participation
The week began on a positive note, with total traded volume hitting 558.94 million shares valued at ₦14.07 billion across 28,922 deals. Compared to the previous Friday, turnover rose by 3%, while deals surged by an impressive 40%, indicating renewed retail activity and stronger market breadth.
However, sentiment was mixed, as losers (26) outpaced gainers (19) among the 128 participating stocks. Market capitalisation held steady at ₦92 trillion, suggesting that selling pressure was contained and largely rotational rather than systemic.
Tuesday: Liquidity Surge, But Trading Aggressiveness Weakens
On Tuesday, liquidity strengthened considerably, with volume rising to 602.77 million shares and turnover jumping to ₦17.21 billion—an 8% increase in volume and a 22% rise in value from Monday. Market capitalisation also climbed to ₦93.1 trillion, confirming fresh fund inflows into equities.
However, this liquidity expansion was not matched by active participation, as deals plunged by 49% to 14,781 transactions. This sharp drop suggests that large institutional trades dominated the session, while retail investors remained on the sidelines, pointing to selective accumulation rather than broad-based buying.
Wednesday: Participation Rebounds, But Momentum Softens
Midweek trading showed waning momentum in volume and value, with activity dropping to 403.78 million shares worth ₦15.41 billion. This represented a 33% decline in volume and a 10% reduction in turnover from Tuesday.
Notably, deal volume rebounded sharply by 45% to 21,500 transactions, revealing heightened activity in smaller trade sizes. This indicates that retail investors re-entered the market, likely capitalising on short-term price movements. Market capitalisation edged up to ₦93.5 trillion, confirming that price weakness was not heavy enough to erode total market value significantly.
Thursday: Continued Softness in Liquidity, Market Holds Firm
Thursday extended the mixed performance as trading volume fell another 14% to 349.17 million shares, with turnover slipping 17% to ₦12.80 billion. Yet, deal count improved by 9% to 23,348 transactions, reinforcing the pattern of sustained retail-level engagement despite shrinking trade sizes.
Market capitalisation remained stable at ₦93.6 trillion, underlining the market’s structural strength and resistance to deep corrections, even amid reduced liquidity.
Friday: Bullish Close with Improved Breadth
The week ended on a firmer footing, with investors exchanging 361.6 million shares worth ₦14.8 billion across 21,022 deals. Compared to Thursday, volume rose 4% and turnover surged 16%, though deals dipped by 10%, again highlighting concentrated buying in select stocks.
Market breadth turned clearly positive, with 38 gainers against 16 losers, signalling a shift in sentiment toward risk-on positioning. Market capitalisation rose further to ₦93.7 trillion, confirming a net weekly appreciation in market value.
Stock-specific momentum was evident in:
UAC of Nigeria (+10%)
Transcorp Hotels (+9.71%)
Royal Exchange (+8.89%)
Ikeja Hotel (+8.74%)
These strong sectoral performances, particularly in hospitality and conglomerates, suggest strategic positioning ahead of earnings expectations and year-end portfolio rebalancing.
Key Weekly Market Takeaways
While volumes fluctuated sharply after Tuesday’s peak, turnover remained relatively stable, showing that capital flow into equities was sustained, albeit selectively.
Rising deal counts on Wednesday and Thursday point to renewed retail confidence, even as institutional investors appeared to dominate high-value trades earlier in the week.
The steady rise from ₦92 trillion to ₦93.7 trillion across the week reflects a gradual wealth effect and persistent bullish undertone.
News.ng reports that the strong closing session was powered by mid- and large-cap rallies, improving overall market breadth and sentiment going into the new trading week.
The NGX ended the week with moderate bullish momentum, supported by improving market capitalisation and positive breadth, even as investors remain selective and sensitive to macroeconomic signals, interest rate direction, and corporate earnings expectations. If liquidity continues to rotate into fundamentally strong stocks, the market is likely to sustain its gradual upward trajectory in the near term.
