Nigerian Stock Market Gains N837 Billion as Corporate Earnings Boost Investor Confidence
Investors on the Nigerian Exchange Limited (NGX) recorded a significant gain of N837 billion last week, fueled by increased demand for blue-chip stocks and positive full-year financial results from listed companies. This surge highlights a robust period of market activity, even as trading metrics showed signs of caution among participants.
Market Indices Show Positive Momentum
The NGX all-share index (ASI) rose by 0.39 per cent to close at 201,698.89, while market capitalisation increased by 0.65 per cent to N129.81 trillion. This growth was largely driven by the additional listing of 21.183 billion ordinary shares from FCMB and 5.07 billion ordinary shares from VFD Group, contributing to the gain from the previous week's N128.96 trillion. Consequently, the year-to-date return improved to 29.62 per cent, reflecting sustained positive momentum in the market.
Mixed Performance Across Sectors
Despite the overall gains, market breadth was negative at 0.51x, with 29 stocks advancing and 57 declining, indicating that more stocks recorded losses during the week. On the sectoral front, performance was mixed, suggesting a market driven by selective positioning rather than broad-based momentum.
- Gaining Sectors: The banking, oil and gas, and commodities indices recorded marginal gains of 0.71 per cent, 0.02 per cent, and 0.01 per cent respectively, supported by targeted buying interest in stocks such as GTCO, Etetna, Japaul Gold, Zichis, and FCMB.
- Declining Sectors: The insurance, consumer goods, and industrial indices fell by 4.25 per cent, 1.74 per cent, and 0.24 per cent respectively, largely due to profit-taking activities in stocks including May & Baker, Legend Internet, Consolidated Hallmark, Johnholt, and Honeywell Flour Mills.
Top Gainers and Trading Activity
On the gainers' chart, Multiverse led with a 20.7 per cent increase, followed by UPDC Reit with a 15.5 per cent gain. International Energy Insurance added 12.5 per cent, while Austine Laz appreciated by 10.5 per cent. However, trading activity slowed down compared to the previous week, with the number of deals, trading volume, and total value traded falling by 40.10 per cent, 27.72 per cent, and 43.59 per cent week-on-week, respectively. In total, investors traded 2.86 billion shares worth N113.76 billion across 216,067 deals, pointing to weaker market participation.
Outlook for the Coming Week
Looking ahead, Cowry Asset Management Limited anticipates that the market will trade with a mildly positive but cautious bias in the near term. Investors are expected to continue rotating into fundamentally strong and liquid names, maintaining a selective approach amid the current market environment. This outlook underscores the ongoing balance between optimism and prudence in Nigeria's stock exchange landscape.
