By Peter Egwuatu
The Nigerian Exchange (NGX) sustained its bullish momentum last week, marking its 7th consecutive week of gains as investors deepened buy positions in blue-chip stocks across key sectors.
Last week performance reflected renewed investor confidence, driven by expectations of stronger corporate earnings, improved macroeconomic sentiment, and renewed portfolio rebalancing toward fundamentally strong companies.
Market activity showed heightened investor participation as the positive sentiment spread across industrial goods, banking, and consumer goods sectors. Blue-chip counters such as Dangote Cement, NASCON Allied Industries, Dangote Sugar, Transcorp Hotels, Aradel Holdings, MTN Nigeria, and Wema Bank were the major movers of the week’s performance.
The market closed on a bullish note last week with Nigeria Exchange Limited, NGX market capitalisation hitting a new high of N98.79 trillion from N94.165 trillion the previous week. In similar manner, the NGX All Share Index, ASI, a major performance indicator rose by 4.9% to close at 155,645.05 points from 148,355.04 points.
Analysis of trading showed that ARADEL gained 25.2%, Dangote Cement 10.8%, MTN Nigeria 8.6%, BUA Foods 6.5%, BUA Cement 12.5% , and WAPCO 7.0%
As a result, Month-to-Date, MtD and Year-to-Date, YtD returns settled higher at 9.1% and 51.2%, respectively.
Activity levels strengthened, with trading volume and value rising by 52.3% week on week, W/W and 68.4% W/W, respectively, reflecting increased market participation. Sector performance was mixed as the Industrial Goods g10.6%), Oil & Gas Index garnered 9.1%, and Consumer Goods Index 3.9%, while the Banking Index declined -1.2% and Insurance Index -1.1%.
Reacting to the market development, analysts at Cordros Research stated: “Looking ahead, we expect the bullish momentum to persist into the coming week as investors digest a fresh wave of corporate earnings, with sentiment largely skewed toward positive surprises”.
While commenting on market outlook, analysts at InvestData Consulting stated: “With the NGX maintaining its bullish breakout and oil prices strengthening, sentiment remains broadly positive.
However, investors are advised to approach with caution as short-term profit-taking may occur.
Market direction will likely remain influenced by earnings expectations, macroeconomic indicators, and liquidity flows, with the index poised to test the 155,000-point resistance level in the near term if buying pressure persists”.
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