NGX All-Share Index Ends Week at 247,222 as Dangote Cement and First HoldCo Hit 10% Limit

The NGX All-Share Index ended the week on its best level of the five sessions. On Friday, 23 October, the benchmark rose 0.92%, or 2,265.33 points, to close at 247,222.27, Nairametrics reported. Market capitalisation climbed by N1.47 trillion to N160.52 trillion, putting the Nigerian Exchange back above the N160 trillion mark after two weak days.

The rally was narrow but heavy. Dangote Cement and First HoldCo both gained the maximum 10% allowed in a day, and trading volume jumped almost 70%.

NGX All-Share Index: Friday's numbers

• ASI close: 247,222.27, up from 244,956.94 on Thursday.
• Market capitalisation: N160.52 trillion, up from N159.05 trillion.
• Volume: 611.66 million shares, up 69.57% from 360.71 million.
• Deals: 33,540, up 6.97% from 31,355.

Nairametrics described Friday's close as the highest index level recorded during the week.

Two days of losses, then a reversal

Friday's move undid a soft patch in midweek. On Wednesday the index closed at 245,116.49. On Thursday it slipped 0.065% to 244,956.94, wiping N103.6 billion from market value, according to Nairametrics. Thursday's turnover was thin at 360.71 million shares, and the biggest moves were in small caps: AVA Capital rose 9.85% while Thomas Wyatt fell 10%.

Friday's N1.47 trillion gain is the same size as the one-day loss we reported earlier this week, when Dangote Cement fell 5.5% and banks slipped. The difference this time is direction: the same heavyweight carried the market up.

Top gainers and losers

Gainers

1. Dangote Cement: +10.00% to N1,111.00, from N1,010.00.
2. First HoldCo: +10.00% to N144.10, from N131.00.
3. Guinea Insurance: +9.41% to N0.93, from N0.85.
4. Fidelity Bank: +9.09% to N24.00, from N22.00.
5. FTN Cocoa Processors: +5.60% to N7.92, from N7.50.

Losers

1. Livestock Feeds: -9.79% to N17.05, from N18.90.
2. Tripple Gee: -8.74% to N2.82, from N3.09.
3. UPDC REIT: -8.14% to N17.50, from N19.05.
4. HBM Nigeria: -7.65% to N350.00, from N379.00.
5. Neimeth International: -6.58% to N7.10, from N7.60.

Sector picture

The sector indices show where the money went. Based on the closing levels Nairametrics published:

• Industrial goods rose from 10,269.22 to 10,646.68, about 3.7%, on the back of Dangote Cement.
• Premium Board climbed from 30,351.38 to 31,175.31, about 2.7%, its peak for the week.
• Banking gained from 2,452.40 to 2,515.47, about 2.6%, helped by First HoldCo and Fidelity Bank.
• Oil and gas fell from 6,191.20 to 6,035.77, about 2.5%, the session's sharpest drop.
• Main Board eased from 10,752.60 to 10,721.06.

Consumer goods closed the week at 4,014.81, slightly below Monday's opening level of 4,030.50, and insurance ended at 1,049.43, below its 1,069.94 open. The sovereign bond index was flat all week at 661.50.

What drove the move

Dangote Cement is one of the largest companies on the exchange by market value, so a 10% move in its share price shifts the whole index. Friday's rally was therefore less a broad-based buying wave than a big bet on a few large names. The oil and gas index going the other way, and the losses in consumer goods and insurance over the week, show that the rest of the market was more mixed.

The jump in volume is the more encouraging sign for bulls. More than 611 million shares changed hands, well above Thursday's 360.71 million and Wednesday's 354.03 million, which suggests the buying in Dangote Cement and First HoldCo had real depth behind it rather than a handful of trades.

How the week looked stock by stock

Thursday's session told a different story from Friday's. The top gainers then were mid-sized and small names: PZ Cussons Nigeria rose 8.58% to N68.95, Tantalizers gained 5.85% to N3.98 and VFD Group added 3.59% to N13.00. On the losing side, Austin Laz fell 8.81%, UPDC dropped 6.49% and Cornerstone Insurance lost 6.12%. Deals fell 3.56% that day, a sign that investors were waiting rather than selling hard.

By Friday the mood had flipped toward large caps. Two of the five biggest gainers, Dangote Cement and First HoldCo, are large, widely held stocks, and Fidelity Bank's 9.09% rise added to the banking index. UPDC REIT's 8.14% fall on Friday followed UPDC's slide on Thursday, leaving the real estate names among the week's weaker performers.

Context for investors

The week has been busy for Nigerian capital markets beyond the index. The Dangote Petroleum Refinery IPO is in its final days at N525 a share, which could pull retail cash toward the offer. Bond yields have also been rising, with the 10-year FGN yield above 17% earlier in the week, which makes fixed income a strong alternative for cautious investors.

Next week, watch whether Dangote Cement holds above N1,100 and whether banking stocks keep their Friday gains. A rally led by one or two heavyweights can fade quickly if the rest of the market does not follow. This is market reporting, not investment advice.