The Nigerian equities market closed last week with a bullish performance, as gains from Wapco, Seplat, and Access Holdings pushed market capitalization to N59.5 trillion, up from N59.215 trillion the previous week. Wapco led the rally with a 27.6% increase following the announcement of its majority stake sale to Huaxin Cement, while Seplat rose by 7.6%, and Access Holdings gained 6.9%. These gains drove the NGX All-Share Index (ASI) to advance 0.7% Week-on-Week (W/W), settling at 98,210.75 points, with a Year-to-Date return of 31.3%.
Trading activity also saw a significant boost, with volume and value increasing by 21.8% and 61.0% W/W, respectively. Sectoral performance was broadly positive, with the Insurance Index leading with a 10.5% increase, followed by Oil & Gas, Industrial Goods, Banking, and Consumer Goods indices. Analysts attribute this robust market sentiment to portfolio repositioning and corporate consolidation activities as investors prepare for the year-end and Q4 earnings season in January 2025.
Despite last week’s gains, analysts forecast mixed sentiments in the coming week. Cordros Research predicts selective positioning in fundamentally sound stocks, while InvestData Consulting anticipates continued bargain-hunting and profit-taking driven by low valuations and year-end portfolio rebalancing. Investors are advised to capitalize on market pullbacks and corrections while remaining attentive to global and domestic economic trends.