Bargain hunting in several blue-chip stocks propelled the Nigerian Exchange Limited (NGX) to a week of strong gains, lifting total market capitalisation by N923 billion. At the close of trading last week, the all-share index rose 0.73 per cent week-on-week, ending at 198,407.3 points, while market capitalisation increased from N126.47 trillion to about N127.39 trillion. This marks a sustained rally and highlights growing investor confidence in domestic equities.
The market’s year-to-date return now stands at 27.5 per cent, reflecting optimism among investors despite a negative breadth. During the week, only 34 stocks gained, while 61 declined, showing that the broader market rally was largely driven by a few heavyweight equities. Premier Paints Plc led the winners with a 32.9 per cent surge, followed by Conoil Plc (20.9%), BUA Cement Plc (20%), Fidson Healthcare Plc (19%), and Omatek Ventures Plc (18.2%).
Trading activity, however, slowed compared with the previous week. The number of deals fell by 14.19 per cent, trading volume by 10.45 per cent, and total value traded by 7.36 per cent. Investors exchanged 3.31 billion shares valued at N164.67 billion across 318,640 deals, indicating slightly weaker participation as some market players took profits from earlier gains.
Sectoral performance was mixed. Banking, insurance, and commodity indices declined by 1.04 per cent, 4.59 per cent, and 0.48 per cent, respectively, while consumer goods, oil and gas, and industrial indices posted gains of 0.63 per cent, 1.5 per cent, and 5.73 per cent. On the flip side, SCOA Nigeria Plc recorded the steepest decline with a 34.1 per cent drop, alongside losses in FTG Insure Plc, Sovereign Trust Insurance Plc, Alexandria Engineering Plc, and LivingTrust Mortgage Bank Plc amid profit-taking pressures.
Analysts at Cowry Asset Management Limited say the near-term market outlook remains mixed. While recent rallies have created profit-taking opportunities, selective buying in fundamentally strong companies with solid earnings and consistent dividends could provide support. Trading activity is expected to remain cautious as investors monitor macroeconomic developments, policy shifts, and corporate earnings reports that may influence market direction.
source: The Guardian