The Nigerian stock market witnessed a remarkable rally, with the All Share Index (ASI) recording a 35.2% year-to-date capital gain, surpassing the country’s inflation rate of 34.6% in November. Last week saw the highest weekly gain since March 2024, fueled by strong performances from blue-chip companies, including ARADEL, which saw its price increase by 20.73%. Other major players like GTCO and Zenith Bank also contributed to the market’s positive momentum, although stocks like BUA Cement and MTN Nigeria faced slight declines.
Investors gained over N1.06 trillion during the week, as the market capitalization rose from N60.24 trillion to N61.30 trillion. The growth was driven by strong buying interest, particularly in consumer goods giants such as Honeywell Flour Mills, Nigeria Breweries, and Nestlé. Analysts observed a bullish trend supported by strong money flow, with many investors positioning themselves ahead of the Christmas period and taking advantage of market pullbacks to secure gains.
Market analysts predict that the positive sentiment will continue, despite potential profit-taking, as investors rebalance portfolios in response to high inflation, low valuations, and end-of-year positioning. They anticipate ongoing sector rotation and increased activity in the market, as investors take advantage of price corrections to buy into undervalued stocks. As global and domestic factors continue to shape market movements, experts advise investors to capitalize on these trends.