The Nigerian stock market is poised for mixed trading in the coming days, with investors increasingly focusing on large-cap, high-liquidity stocks to guide market direction. After last week’s mild decline, analysts say cautious sentiment is shaping trading activity as investors weigh profit-taking and portfolio rebalancing ahead of the new quarter and earnings season.
Last week, the NGX All-Share Index (NGX-ASI) closed at 152,057.38 points, down 0.12%, while market capitalization decreased by N156.52 billion to N128.969 trillion. Investor sentiment was mixed, with 55 stocks gaining, 36 declining, and 55 remaining unchanged. Top gainers included Zichis Agro Allied Industries, Premier Paints, and John Holt, while Livestock Feeds, Fidson Healthcare, and Cadbury Nigeria recorded the largest losses.
Market analysts describe the current phase as a short-term correction following a period of strong rally. Cowry Assets Management Limited noted that stocks trading at 52-week and all-time highs, combined with low money inflows, are leaving investors waiting for new catalysts, particularly corporate earnings, to drive further activity. Analysts advise focusing on fundamentally strong stocks with robust earnings potential.
Imperial Asset Managers Limited highlighted that selective interest will remain concentrated in large-cap stocks, with potential upside in sectors like Oil & Gas and Insurance. Despite pockets of growth, broader market activity is expected to stay cautious, reflecting a careful investor approach amid ongoing market uncertainties.
Trading activity last week totaled 3.95 billion shares valued at N201.312 billion in 359,642 deals. The Financial Services sector led activity, accounting for nearly 73% of volume and over 50% of value, followed by ICT and Agriculture industries. Heavy trading in Wema Bank, Access Holdings, and United Bank for Africa represented over a third of total market turnover, underscoring the market’s focus on major blue-chip stocks.
source: Leadership