- Positive Sentiment Drives Trading Volume, Led by Financial Sector
- Analysts Predict Potential Reversal in Market Momentum Amid Profit-Taking and MPC Outlook
The Nigerian equity market recorded a N77 billion gain last week, pushing the total market capitalisation closer to the anticipated N60 trillion threshold. As of the close of the week, the market capitalisation stood at N59.29 trillion, reflecting overall positive market sentiment.
The All-Share Index saw a slight increase of 0.11 percent, closing at 97,829.02 points, signalling continued optimism in the market.
Market Activity Overview
A total of 1.95 billion shares worth N35.86 billion were traded across 48,553 deals, marking an increase in both volume and value compared to the previous week. The prior week recorded a turnover of 1.48 billion shares, valued at N38.88 billion in 44,795 deals.
The Financial Services Industry led the market by volume, trading 1.041 billion shares valued at N16.207 billion in 21,099 deals, which accounted for 53.34 percent of the total turnover volume and 45.19 percent of the total value.
The Oil and Gas Industry followed with 273.4 million shares worth N6.717 billion in 5,489 deals, while the Services Industry placed third with 141.18 million shares valued at N779.17 million in 3,072 deals.
Noteworthy Stocks and Sector Performance
Particularly notable in the week’s trading were Japaul Gold and Ventures Plc, FBN Holdings Plc, and Access Holdings Plc, which collectively accounted for 461.5 million shares worth N6.183 billion, representing 23.64 percent of the total turnover volume and 17.24 percent of the total turnover value.
In terms of price movements, 52 stocks recorded price gains, up from 39 the previous week. Top gainers included Eunisell Interlinked Plc (+60.72 percent), Tantalizers Plc (+57.33 percent), and John Holt Plc (+42.49 percent).
Conversely, 33 stocks experienced declines, a decrease from the 46 losers the previous week. The biggest losers included Mecure Industries Plc (-18.53 percent), Multiverse Mining and Exploration Plc (-17.61 percent), and FBN Holdings Plc (-7.97 percent).
Across market sectors, four indices gained, with the Insurance and Consumer Goods indices leading the pack. The Insurance Index surged 4.5 percent week-on-week, boosted by strong performances from Sunu Assurance (+16.2 percent), Mansard Insurance (+13.4 percent), and Wapco (+28.6 percent). Meanwhile, the Consumer Goods Index rose 1.9 percent, driven by Unilever (+20.8 percent) and Dangote Sugar (+16.7 percent).
The Oil & Gas Index gained 0.2 percent, led by Beta Glass (+9.5 percent) and Japaul Gold (+7.0 percent), while the Banking Index fell 2.6 percent, weighed down by losses in Access Holdings Plc (-7.5 percent) and Sterling Bank (-5.6 percent). The Information and Communication Technology Index closed flat for the week.
Outlook
According to Afrinvest, the Nigerian stock market may face a reversal in its positive momentum in the coming week. The firm anticipates that profit-taking and investor caution in response to the Monetary Policy Committee’s expected hawkish stance will dampen market sentiment.
“Next week, we anticipate the bourse to reverse its positive momentum, driven by profit-taking activities and risk-off reactions to the expected hawkish tilt of the MPC,” Afrinvest stated.
Investors are likely to remain cautious as they await further developments on monetary policy and economic conditions in the coming weeks.
