The Nigerian stock market staged a strong rebound last week, reversing a four-week losing streak and rewarding investors with gains of more than ₦986 billion. The rally, driven by renewed investor confidence and attractive entry prices, pushed the Nigerian Exchange Limited (NGX) All-Share Index higher in four of the five trading sessions.

By the close of trading, the NGX All-Share Index rose 1.2% week-on-week to 140,545.69 points, supported by sharp price advances in key stocks. WAPCO led with a 13.3% jump, while Dangote Sugar gained 9.1%, Zenith Bank added 4.8%, and UBA climbed 4.2%, underscoring renewed appetite for fundamentally sound companies.

Market capitalisation – the total value of listed equities – increased to ₦88.92 trillion, up from ₦87.94 trillion the previous week. This positive momentum lifted Month-to-Date (MtD) and Year-to-Date (YtD) returns to 0.3% and 36.7%, respectively, reflecting improved sentiment among retail and institutional investors.

Although total traded volume and value fell by 37.7% and 39.5% week-on-week, sectoral performance remained broadly positive. The Oil & Gas Index and Insurance Index each rose 2.4%, the Banking Index climbed 1.7%, while the Industrial Goods and Consumer Goods indices advanced 1.1% and 1.0%, respectively, indicating widespread gains across the market.

Market analysts expect a more cautious tone in the coming week as investors await fresh macroeconomic data and third-quarter earnings. Cordros Capital noted that portfolio flows will likely focus on fundamentally strong stocks, while InvestData Consulting highlighted that bargain hunters could exploit price pullbacks even as profit-taking persists. Crude oil prices and August inflation figures are also expected to influence sentiment ahead of a potential Monetary Policy Committee rate decision.

source: vanguard