Despite the public holiday declared by the Federal Government on Friday, to mark the Eid-el-Kabir celebration, the Nigerian equities market sustained positive sentiments as investors’ fortunes soared significantly by N1.8 trillion.
Renewed investor confidence, spanning nearly all key sectors, sustained positive sentiment across the four trading days as index rose by 2.6 per cent to close at 114,616.75 while market capitalisation garnered N1.81 trillion to settle at N72.28 trillion.
The uptrend was fueled by bargain hunting, particularly in financial services, energy, telecoms and fast-moving consumer goods (FMCG) sectors.
The wave of portfolio repositioning came at the onset of a new trading month, coinciding with optimism from the latest earnings season and a positive Purchasing Managers’ Index (PMI) report – both signalling a resilient underlying economy.
With total deals dropping by 28.7 per cent to 63,763 and traded volume and value falling by 15.6 per cent and 37.2 per cent respectively, the market breadth remained healthy.
A total of 53 gainers outpaced 43 losers, yielding a breadth ratio of 1.23x. The year-to-date return on the NGX benchmark index further strengthened to 11.36 per cent, as investors selectively built exposure to sectors expected to benefit from both cyclical rebounds and structural reforms.
Sector performance reinforced this optimism across the board. The NGX Banking Index emerged as the top performer, rising 4.7 per cent on strong demand for AccessCorp, Wema Bank, GTCO and FirstHoldco.
The Insurance index gained 3.4 per cent, buoyed by Lasaco, WAPIC, Guinea Insurance and Cornerstone. Oil & Gas equities also appreciated, with the index advancing 3.3 per cent on bargain hunting in Oando and JapaulGold.
In addition, the consumer goods stocks added 2.3 per cent week-on-week, driven by renewed interest in May&Baker, Fidson, International Breweries and Guinness.
The industrial goods index soared by 1.2 per cent, supported by Dangote Cement, Berger Paints and Lafarge Africa while the NGX commodities index rose by 0.7 per cent on bargain hunting in Multiverse and Aradel.
Analysts stated that the market’s performance despite shortened trading and subdued volumes reflects not only investor optimism but also a calculated shift toward sectors primed for sustainable recovery and growth.
Cowry Asset Management Limited believes the prevailing bullish trend is likely to persist in the near term, driven by expectations of further corporate earnings releases and the upcoming Q1 2025 GDP figures.
They attributed the sustained market momentum to sectoral rotation strategies and growing optimism about the resilience of Nigeria’s domestic economy.
Cowry also noted that while overall trading activity may remain moderate as some investors tread cautiously ahead of fresh macroeconomic catalysts, positioning in fundamentally strong stocks with robust earnings outlook and defensive traits remains advisable, especially amid current liquidity and economic uncertainties.
Cordros Capital projected that in the absence of major macro-level catalysts, market performance will continue to be shaped by company-specific developments and sector-driven dynamics.
This view underscores the selective nature of current buying patterns, where investors are focusing on stocks with clear growth or value triggers. A total turnover of 3.214 billion shares worth N76.348 billion was recorded in 64,156 deals.
This represents a decline compared to the previous week’s total of 3.794 billion shares valued at N119.394 billion across 89,636 deals, indicating a moderation in both volume and value amid a shorter trading week and more cautious investor sentiment.
The financial services sector maintained its dominance on the activity chart, accounting for the bulk of transactions. With 2.3 billion shares traded at a value of N52.2 billion in 27,326 deals, the sector contributed 71.9 per cent to the total equity turnover.
The ICT sector followed with 301.9 million shares worth N5 billion across 4,137 deals, while the consumer goods sector ranked third with 144.5 million shares valued at N5.6 billion exchanged in 8,093 deals.
Fidelity Bank Plc, Legend Internet Plc, and Guaranty Trust Holding Company Plc accounted for 1.5 billion shares worth N34.4 billion traded in 4,939 deals, representing 48.06 per cent of total turnover.
