The Nigerian stock market ended the week on a strong note, largely driven by increased demand for MTN Nigeria shares after the NCC approved a 50% tariff hike for telecom services. Additionally, Transcorp Power posted impressive earnings in its 2024 financial results, boosting investor confidence. This resulted in the NGX All-Share Index (ASI) rising by 1.2% week-on-week to close at 103,598.46 points, bringing the year-to-date return to 0.7%.
Market activity surged, with trading volume and value increasing by 36.3% and 28.5%, respectively. Sectoral performance was mixed as the Banking and Industrial Goods indices gained, while Consumer Goods, Insurance, and Oil & Gas indices declined. A total of 44 stocks appreciated in price, up from 33 in the previous week, while 44 stocks declined, an improvement from the 57 recorded earlier. SCOA Nigeria led the gainers with a 59.68% rise, while EUNISELL Interlinked and John Holt posted significant losses.
Analysts predict that corporate earnings reports will shape market trends in the coming weeks, as companies publish their unaudited 2024 full-year results along with dividend declarations. They expect investors to continue adjusting portfolios in response to earnings data and economic conditions, with price corrections providing new buying opportunities despite market volatility.
Source: Vanguard