Nigerian Stock Market Poised for Gains as Earnings Releases Drive Investor Confidence

The Nigerian equities market is set for a strong week as investors show renewed confidence ahead of key earnings releases and dividend announcements. Analysts attribute the market’s bullish momentum to selective accumulation in large-cap stocks, signaling optimism among investors as the holiday period approaches.

The local bourse recently crossed the psychological 200,000-point mark, extending its upward trend and setting new records. Afrinvest Limited noted that the market rally is expected to continue, particularly as investors anticipate full-year 2025 earnings reports from major banks alongside other dividend announcements.

Despite the optimism, market watchers like Cowry Assets Management Limited caution that a short-term pullback may occur due to profit-taking and sectoral rotations. Any corrections, however, are expected to be minor, potentially creating attractive entry points for investors focused on fundamentally strong stocks. Support levels are pegged around 200,000 and 198,500 points, with resistance between 205,000 and 207,000 points, a breakthrough of which could trigger further gains.

Last week’s trading activity reflected broad-based participation, with the NGX All-Share Index advancing 1.39% to close at 201,156.85 points. Market capitalization rose by ₦1.77 trillion to ₦129.126 trillion. Leading the gainers were John Holt (+25.40%), BUA Cement (+21.00%), and Premier Paints (+20.62%), while Zichis Agro Allied Industries (-50.58%), Presco (-18.37%), and DAAR Communications (-13.55%) led the decliners.

Trading volumes surged, totaling 8.761 billion shares valued at ₦267.253 billion across 193,473 deals. The ICT sector dominated activity with 5.33 billion shares traded, followed by Financial Services with 2.77 billion shares, while Consumer Goods contributed 174.48 million shares. Top equities such as E-Tranzact International, FCMB Group, and Wema Bank accounted for nearly 70% of total traded volume, highlighting concentrated investor interest in leading companies.

source: Leadership