In a strong display of investor confidence, the Nigerian equities market gained N1.43 trillion in market value last week, with the All-Share Index (ASI) rising by 1.57% to close at 119,995.76 points. Market capitalisation advanced by 1.92% to N75.96 trillion, bolstered by significant buying interest across all tiers of stocks and the listing of an additional 2.94 billion shares by Stanbic IBTC Holdings Plc. Analysts cited active demand in the Banking, Consumer Goods, Commodities, and Agriculture sectors as key drivers of the rally.
Trading activity remained robust on the Nigerian Exchange, with 3.90 billion shares valued at N102.22 billion traded across 114,484 deals, a marked increase in volume over the previous week. The Financial Services sector maintained dominance, contributing over half of the weekly turnover. Fidelity Bank, Access Holdings, and Zenith Bank led the charge, accounting for 22.16% of traded volume and 25.39% of total value.
Investor sentiment was overwhelmingly positive, with 78 stocks posting gains versus 27 losers. Neimeth Pharmaceuticals led the gainers with a 60.5% surge, followed by Ellah Lakes (+31.3%) and International Breweries (+26.4%). Other notable gainers included CWG, Champion Breweries, Learn Africa, and Beta Glass. On the downside, Multiverse Mining and Associated Bus Company both dropped by 9.3%, with Oando and BUA Foods also recording losses.
Sectoral performance showed broad strength, with Industrial Goods topping the charts at 3.92% growth. Consumer Goods (+3.73%), Insurance (+3.67%), and Banking (+2.59%) indices also posted solid gains. However, the Oil and Gas Index was the sole sector in decline, falling by 2.23% due to losses in Oando and Aradel Holdings. The NGX’s year-to-date return now stands at 16.58%, reflecting a strong upward trajectory.
Despite the market’s strong performance, analysts warn of potential short-term pullbacks as investors may engage in profit-taking amid overbought conditions. Cowry Asset Management noted that the end of the second quarter could bring window dressing from fund managers, which might temporarily support the bullish trend. Still, investors are advised to watch for volatility in large-cap stocks.
Source: The Sun