A powerful pre-Christmas surge, known as the Santa-Claus rally, swept through the Nigerian Exchange Limited (NGX) last week, delivering substantial gains to market participants. Renewed and aggressive buying interest, driven by seasonal positioning ahead of the holidays, propelled the equities market to a strong finish.
Market Cap Soars to N96.94 Trillion
Over the course of five trading sessions, the market witnessed a significant wealth creation event. The All-Share Index (ASI) advanced by 1.76 per cent, closing at 152,057.38 points. More impressively, the total market capitalisation climbed to N96.94 trillion, representing a staggering gain of N1.67 trillion for investors within the week. This performance pushed the year-to-date return to a robust 47.73 per cent.
The positive sentiment was broad-based, with market breadth firmly in favour of gainers. A total of 55 stocks appreciated in value, while 35 recorded losses. Trading activity rebounded sharply, indicating stronger risk appetite and improved liquidity. Volume traded skyrocketed by 125.2 per cent to 9.85 billion units, and the total turnover jumped by an astonishing 212.6 per cent to N305.89 billion. Investors executed 126,637 deals during the period.
Sectoral Performance: Consumer Goods and Banking Lead Charge
The rally was widespread across most sectors of the market. Five out of the six tracked sectoral indices closed the week in positive territory.
The Consumer Goods index emerged as the top performer, gaining 2.75 per cent. This surge was primarily driven by strong buying interest in stocks like Guinness Nigeria and Champion Breweries.
Close behind was the Banking index, which advanced by 2.73 per cent. This growth was fueled by significant interest in First Bank of Nigeria Holdings (FirstHoldCo) and Afriprudential Registrars.
Other sectors that posted gains include:
- Industrial Goods: Up 1.09%, supported by BUA Cement and Berger Paints.
- Insurance: Rose 0.96%.
- Commodities: Gained 0.34%.
The Oil & Gas sector was the sole decliner, dipping slightly by 0.17 per cent as some investors took profits from previous rallies.
Top Gainers and Losers
On the individual stock front, Aluminium Extrusion Company (ALEX) led the gainers' chart with an explosive 59.4 per cent price surge. It was followed by Mecure Industries, FirstHoldCo, Guinness Nigeria, and NPF Microfinance Bank.
Conversely, stocks like Livestock Feeds, Japaul Gold, International Energy Insurance, FTN Cocoa, and Stanbic IBTC Holdings found themselves on the losers' list. Analysts attribute these declines largely to profit-taking activities and portfolio rebalancing by investors.
Analysts See Positive but Selective Sentiment Ahead
From a technical perspective, the market remains firmly in a strong uptrend. However, some short-term overbought signals suggest the possibility of a mild consolidation phase in the immediate future.
Looking ahead, market analysts at Cowry Research anticipate that investor sentiment will remain positive but become more selective. They expect capital to flow towards stocks with strong fundamentals and clear earnings visibility, as the market navigates the final trading days of the year and prepares for the new year.
