•As investors gain N3.5trn
By Peter Egwuatu
The stock market maintained a positive outcome and outlook at close of trading last weekend, driven essentially by positive macroeconomic factors, declining rates in fixed income market instruments as well as market sentiments.
Consequently, the Nigerian Exchange Limited, NGX, closed higher for the seventh consecutive week with gains recorded in all five trading sessions of the week under review, and investors carting home over N3.464 trillion from their investment in the market.
Analysis of trading showed that investor sentiment was supported by a combination of factors, including strategic positioning ahead of the upcoming first half, 2025, H1’25, earnings season, strong price action in select small and mid-cap stocks, as well as particular interests in banking tickers.
As a result, the market capitalisation, which represents the total value of listed stocks on the Exchange, closed higher at N79.803 trillion from N76.339 trillion the previous week.
In the same vein, the NGX All-Share Index, ASI, another major stock market gauge, advanced by 4.3% to 126,149.59 points from 120,989.66 points, driven by notable gains in MTN, which went up by 10.5%, followed by Zenith Bank 21.2%, GTCO 13.1%, UBA 19.6%, and WAPCO 14.6%.
The Month-to-Date, MtD, and Year-to-Date, YtD, returns settled higher at 5.1% and 22.6%, respectively.
On trading activity, volume declined by 1.2%, while value increased by 0.1%. Meanwhile, sectoral performance was broadly bullish, as the Insurance Index rose by 13.8%, Banking Index 12.5%, Industrial Goods Index 2.9%, and Consumer Goods Index 2.2%, while the Oil & Gas Index declined by -0.7% being the sole loser of the week under review.
Commenting on market outlook, analysts at Cordros Capital stated: Next week, we expect the upward market momentum to persist as investors consolidate recent gains and adjust positions ahead of anticipated strong corporate results. Trading activity will likely be driven by ongoing portfolio rebalancing and bargain hunting across select counters”
Also commenting, analysts at InvestData Consulting Limited, said: “ We expect positive sentiments on bargain hunting and sector rotation in the midst of profit booking, as traders trade with caution, while investors digest March year-end accounts and dividend payout and buying into value in the midst of portfolio reshuffling, even as few audited accounts are expected to hit the market with dividend announcement.
Also, sector rotation and portfolio rebalancing continued in the market with investors taking advantage of price correction to buy into value. This is amid the volatility and pullbacks that add more strength to upside potential’.
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