Investors positioning ahead of the Santa Claus rally triggered renewed buying interest in the equities sector of the Nigerian Exchange Limited (NGX) last week, as market capitalisation rose by N1.54 trillion.
The market’s mood was visibly upbeat in the week, with confidence deepening and the seasonal effect firmly taking hold across major blue-chip and mid-tier equities.
By the close of the week, the benchmark all-share index advanced by 1.63 per cent to settle at 149,433.25 points, inching closer to the symbolic 150,000 threshold as sentiment turned broadly positive.
Market capitalisation rose by 1.64 per cent to N95.26 trillion, translating to N1.54 trillion in gains for equity holders over the five-day trading window. The gain pushed the year-to-date return to an impressive 45.18 per cent, supported by a positive market breadth of 49 gainers against 41 laggards.
The market shifted from the high-volume speculative burst seen earlier, tilting instead toward more value-driven accumulation.
As a result, weekly volume slipped by 33.91 per cent to 4.37 billion units, while turnover value declined by 13.66 per cent to N97.87 billion from 6.62 billion units and N113.35 billion previously. Despite the softer activity, total trades held steady, inching up by 1.08 per cent to 110,866 deals compared with last week’s 109,680.
Sectoral performance presented a mixed picture. Three indices finished in the green while three closed lower. The insurance index outperformed the pack, climbing 40 per cent, while consumer goods followed with a 2.64 per cent gain.
The industrial goods index made a mild advance of 0.23per cent. On the flip side, the NGX commodity index led the decline with a 0.49 per cent drop, while the oil and gas and banking indices edged lower by 0.13 per cent and 0.12 per cent, respectively.
Among individual stocks, Morrison led the charge with a standout 32.5 per cent weekly gain, followed by Mecure at 27.3 per cent, Japaul Gold at 26.7 per cent, Sovereign at 17.2 per cent and PZ Cussons at 16.2 Per cent, reflecting heightened investor interest driven by perceived upside potential.
Meanwhile, Eterna Plc emerged as the worst performer, shedding 14.9 per cent week-on-week.
It was followed by UACN, down 14.3 per cent, while eTranzact and Transcorp Hotels each lost 10 per cent and Chellarams declined by 9.9 per cent as investors rebalanced positions into more compelling opportunities.
According to Cowry Research, the equities market’s upward momentum remains firmly intact, underpinned by sustained investor rotation into fundamentally strong stocks ahead of the anticipated rise in liquidity that typically accompanies the year-end period.
The firm noted that as trading activity intensifies toward the close of the year, investors are increasingly favouring counters with solid earnings prospects and resilient balance sheets.
Looking into the coming week, Cowry Research expects the market to extend its bullish run as seasonal year-end factors, including portfolio rebalancing and increased fund flows, take fuller effect.
While short-term volatility cannot be ruled out, the research firm said the broader sentiment remains positive, supported by improving liquidity conditions.
Cowry Research also reiterated its guidance to investors to focus on fundamentally sound stocks, stressing that companies with strong financials and sustainable growth drivers are best positioned to outperform as the rally progresses.
