NGX turnover rises by 10% in five days as financial stocks drive market

Trading activity on the Nigerian Exchange Limited (NGX) closed the week stronger, with investors showing renewed appetite for equities across key sectors.

A total of 3.18 billion shares worth N99.68 billion were traded in 132,711 deals, reflecting a 10.39 per cent increase in turnover compared to the previous week’s N90.29 billion from 3.11 billion shares in 118,018 deals.

The surge was largely driven by heavy transactions in the financial services sector, which maintained its dominance by accounting for over 70 per cent of total volume. The sector recorded 2.28 billion shares valued at N38.81 billion in 57,934 deals, underscoring the continued role of banks and insurers as the primary drivers of liquidity on the exchange.

This trend highlights investors’ preference for financial stocks, which are generally seen as resilient and capable of delivering near-term returns, especially in a volatile macroeconomic environment.

The consumer goods sector followed distantly with 198.39 million shares worth N12.83 billion, while the oil and gas sector secured third place with 186.74 million shares valued at N35.17 billion.

The strong showing from oil and gas reflects renewed interest in energy stocks, possibly linked to expectations of higher crude oil prices and reforms within the domestic energy market.

Three stocks—FCMB Group Plc, Access Holdings Plc, and Universal Insurance Plc—dominated market activity, jointly contributing 39.17 per cent of total volume and 14.32 per cent of value. Their combined 1.24 billion shares are worth N14.27 billion, highlighting the concentration of market liquidity in a handful of financial names, a pattern that has become increasingly visible in recent months.

The week’s gainers painted a picture of selective investor optimism. E-Tranzact International Plc rallied to N14.95 from N10.30, reflecting renewed confidence in fintech-related plays.

Regency Assurance Plc and Royal Exchange Plc also saw notable gains, pointing to growing interest in insurance stocks as investors diversify within financials. Chellarams Plc and DAAR Communications Plc closed equally higher, suggesting that some mid- and small-cap counters are attracting speculative demand.

However, the losses posted by Union Dicon Salt Plc, Thomas Wyatt Nig Plc, Secure Electronic Technology Plc, Nigerian Enamelware Plc, and May & Baker Nigeria Plc tempered the overall upbeat tone. The sharp declines—particularly the double-digit percentage losses in Nigerian Enamelware and Secure Electronic Technology—serve as a reminder of the volatility in smaller, less liquid counters.

Overall, the NGX’s performance this week reflects a market in transition. While liquidity remains concentrated in financial stocks, select consumer and energy plays are beginning to attract attention.

The increase in turnover value also signals stronger investor participation, likely influenced by bargain-hunting, sectoral rotation, and positioning ahead of anticipated policy shifts.