The Nigerian Exchange Limited (NGX) sustained its bullish performance of 2024, as investors continued to show strong confidence in the equities market with the capitalisation surging by N1.137 trillion in the first trading week.

The all-share index (ASI) also performed impressively this week. Specifically, the market capitalisation of listed equities rose by N1.137 trillion to close to N64.3 trillion last week.

Also, the ASI, which measures the performance of listed equities, rose from 103,586.33 points to 105,451.06 points, representing 1,864.73 points or 1.8 per cent rise.

This momentum highlights a continuation of the optimism seen in 2024. Investors anticipate policy clarity and corporate earnings growth in the coming months.

The growth was driven by increased investors’ participation in blue-chip stocks across various sectors, particularly banking, telecommunications and industrial goods.

Analysts attribute the market’s rally to improving macroeconomic indicators, sustained economic reforms and stability in the foreign exchange market. Also, a turnover of 4.6 billion shares worth N85 billion was recorded in 72,562 deals by investors, translating to a significant increase from the 2.6 billion units, valued at N69 billion that was exchanged in 47,953 deals in the week ending on January 3.

This sharp rise in trading activity reflects higher investors’ participation and growing confidence in the market. The analysts expect the market to maintain the positive momentum, supported by strategic positioning ahead of corporate earnings releases, sector-specific developments and policy consistency.

According to them, the banking and consumer goods sectors are projected to see increased activities as companies prepare to announce full-year results and investors realign their portfolios.

Despite lingering challenges such as high interest rates and external economic pressures, the capital market is poised for sustained growth. Experts project increased participation from local and foreign investors, further underscoring the resilience of the Nigerian capital market and its role in economic recovery.

Analysts at Cordros Capital said: “Looking ahead, we expect the market to maintain its positive momentum, supported by strategic positioning ahead of earnings releases, sector-specific developments, and potential policy updates.”

Cowry Asset Management said: “Looking ahead, we expect the bullish momentum in the local bourse to persist in the coming week, supported by anticipation of Q4 2024 unaudited financial results and preparations for the dividend earning season.

“Positive sentiment is likely to prevail as stocks reach new historical highs, bolstered by favourable market valuations and outlooks. Nonetheless, we advise investors to focus on fundamentally sound stocks to maximise returns amidst the ongoing rally. ”

Vetiva Dealings and Brokerage said: “Next week (this week), we anticipate investors to maintain their positioning ahead of full-year earnings releases, with corporate actions likely serving as a key market driver. Banking and consumer goods sectors are expected to steer market direction, while the insurance space may experience another round of volatility.

“Also, investors will keep a close eye on developments in the macroeconomic space for further cues. Overall, we foresee a volatile trading week across all sectors.”

Last week’s upturn was spurred by bargain-hunting in MTNN (+21 per cent), TransNational Corporation of Nigeria (Transcorp) (+18.3 per cent) and Transcorp Hotel (+9.8 per cent).

The financial services industry (measured by volume) led the activity chart with 3.4 billion shares valued at N40.8 billion traded in 34,364 deals. It contributed 73.8 per cent to the total equity turnover volume.

The services industry followed with 407 million shares worth N2.2 billion in 4,996 deals. The ICT industry ranked third with a turnover of 237 million shares worth N3.6 billion in 5,280 deals.

Trading in the top three equities namely Wema Bank Plc, FBN Holdings Plc and Universal Insurance Plc (measured by volume) accounted for 1.6 billion shares worth N20.8 billion in 4,922 deals, contributing 35.7 per cent to the total equity turnover volume.

Also, the NGX-Banking Index emerged as the sole gainer, advancing by 1.9 per cent week-on-week, driven by price appreciation in Wema Bank, FBN Holdings, FCMB and GTCO respectively.

The NGX-Insurance Index led the decliners, shedding 6.9 per cent this week, occasioned by losses in SUNU Assurance, Prestige Assurance, and Cornerstone Insurance.