Bargain hunting in many blue-chip stocks lifted market capitalisation by N923 billion last week, sustaining the rally witnessed on the Nigerian Exchange Limited (NGX) in the past few weeks.

At the close of transactions last week, the all-share index rose by 0.73 per cent week-on-week to close at 198,407.3 points.
Total market capitalisation rose from N126.47 trillion recorded in the previous week to about N127.39 trillion, representing an increase of roughly N923 billion.

The improvement further strengthened the market’s year-to-date return to 27.5 per cent, underscoring sustained investor confidence in domestic equities.

Despite the overall gain, market breadth remained negative as decliners outnumbered gainers.

A total of 34 stocks appreciated during the week, while 61 equities closed lower, indicating that the broader rally was driven largely by a select group of heavyweight stocks.

Trading activity moderated compared with the previous week. The number of deals, total trading volume and value traded declined by 14.19 per cent, 10.45 per cent and 7.36 per cent, respectively.

By the end of the week, investors had exchanged 3.31 billion shares valued at N164.67 billion in 318,640 deals, reflecting slightly weaker participation in the market.

Sectoral performance was mixed during the period. Banking, insurance and commodity indices declined by 1.04 per cent, 4.59 per cent and 0.48 per cent, respectively.

On the other hand, the consumer goods, oil and gas and industrial indices posted gains of 0.63 per cent, 1.5 per cent and 5.73 per cent, signalling stronger investor appetite in those segments of the market.

On the price movement chart, Premier Paints Plc emerged as the top gainer after its share price surged by 32.9 per cent. It was followed by Conoil Plc, which rose by 20.9 per cent, BUA Cement Plc with a 20 per cent increase, Fidson Healthcare Plc, which gained 19 per cent and Omatek Ventures Plc with an 18.2 per cent rise, reflecting strong buying interest in those counters.

On the other hand, SCOA Nigeria Plc recorded the highest decline with a 34.1 per cent drop. Other major laggards included FTG Insure Plc, which fell by 20.8 per cent, Sovereign Trust Insurance Plc was down by 20.7 per cent, Alexandria Engineering Plc declined by 18.7 per cent and LivingTrust Mortgage Bank Plc shed 17.4 per cent amid profit-taking and continued selling pressure in those stocks.

Analysts at Cowry Asset Management Limited said that the outlook for the market in the near term is likely to remain mixed as investors continue to rebalance their portfolios following the recent rally in several equities.

According to the analysts, the upward movement recorded in recent weeks has created opportunities for profit-taking in stocks that have witnessed significant price appreciation.

They, however, noted that the market could still find support from selective buying interest in fundamentally strong companies, particularly stocks with solid earnings outlooks and consistent dividend-paying histories, which typically attract investors seeking stable returns.

The analysts added that trading activity is expected to remain cautious in the coming sessions as market participants closely track macroeconomic developments, policy signals and corporate earnings expectations that could influence investment decisions and overall market direction.