Oil & Gas stocks’ rally advances equities market marginally by 0.01%

The Nigerian equities market opened the week on a cautious but positive note on Monday, buoyed by gains in select large- and mid-cap stocks, particularly in the oil and gas sector, despite widespread weakness across most other sectors of the market.

The benchmark Nigerian Exchange Limited (NGX) All-Share Index (ASI) edged up by 0.01 per cent, or one basis point, to close at 165,384.63 points. As a result, market capitalisation rose slightly by N9.12 billion to N106.16 trillion. Month-to-date return settled at 0.01 per cent, while year-to-date gains remained positive at 6.3 per cent.

Market performance was driven largely by price appreciation in Aradel Holdings Plc, which gained 5.1 per cent, and Stanbic IBTC Holdings Plc, which advanced by a strong 9.3 per cent. These gains more than offset losses recorded in some major financial stocks, including First HoldCo Plc, which declined by 8.8 per cent, and Ecobank Transnational Incorporated, which shed 8.3 per cent.

Market breadth remained bearish, highlighting cautious investor positioning. Declining stocks outnumbered gainers, with 44 losers against 28 to 29 advancing equities, translating to a negative breadth ratio. This indicates that the slight market advance was driven by a handful of stocks rather than broad-based buying interest.

On the gainers’ table, Premier Paints Plc and Universal Insurance Plc topped the chart with gains of 10.0 per cent each. Other notable advancers included DAAR Communications Plc, RT Briscoe (Nigeria) Plc, and Morison Industries Plc. Conversely, Omatek Ventures Plc and Union Homes Real Estate Investment Trust recorded the steepest losses of the day, each shedding 10.0 per cent. Other notable decliners included AXA Mansard Insurance Plc, Deap Capital Management and Trust Plc, and C&I Leasing Plc.

Sectoral performance was largely negative, underscoring the mixed sentiment that characterised trading. The NGX Insurance Index led decliners, falling by 2.0 per cent, followed by the NGX Banking Index, which dropped by 0.64 per cent. The NGX Consumer Goods Index declined by 0.37 per cent, while the NGX Industrial Goods Index slipped marginally by 0.08 per cent. In contrast, the NGX Oil and Gas Index emerged as the best-performing sector, rising by 2.0 per cent, while the NGX Commodity Index advanced by 1.11 per cent.

Trading activity improved notably, indicating renewed investor participation at the start of the week. Total volume traded increased by 11.0 per cent to 762.75 million shares, while the value of transactions surged by 22.86 per cent to N18.41 billion. A total of 55,374 deals were executed on the exchange, representing a 33.26 per cent increase compared with the previous trading session.

Tantalizers Plc emerged as the most actively traded stock by volume, with 88.49 million shares exchanged. Geregu Power Plc topped the value chart, as investors traded shares worth N2.78 billion, reflecting sustained interest in the power and energy space.

Overall, market analysts note that while the equities market closed in positive territory, the marginal gain alongside weak market breadth points to cautious trading and ongoing portfolio rebalancing. Near-term market direction is expected to depend on corporate earnings releases, interest rate movements, and the sustainability of gains in the oil and gas sector.