Yuletide rally lifts capitalisation by N770 billion in one week

• Analysts predict bullish outlook in coming weeks

The upcoming yuletide period spurred transactions across sectors of the equities market last week, pushing market capitalisation up by N770 billion in one week.

Last week, the market capitalisation of the Nigeria Exchange Limited ( NGX) cross surpassed the N60 trillion mark to settle at N60.241 trillion. Also, the all-share index, which measures the performance of listed equities inched closer to 100,000 points, occasioned by investors’ renewed interest in equities.

The index rose by 1, 270.54 points or 1.3 per cent from 59,471 trillion recorded last week Monday to N69.241 trillion while market capitalisation appreciated by N770 billion from 98,103.52 points to 99,378.06 points.

Operators believe that the gain underscores the renewed interest in equities as investors actively reposition for year-end opportunities. Consequently, the year-to-date return of the benchmark index rose significantly to 32.9 per cent.

On the sectoral analysis, the NGX oil and gas sector emerged as the highest price gainer, posting 7.61 per cent, driven by increased demand for energy stocks with stronger fundamentals.

The NGX Insurance sector followed closely, appreciating by 7.52 per cent week-on-week, while the NGX consumer goods and NGX banking indices posted weekly gains of 1.01 per cent and 0.16 per cent, respectively.

However, the NGX industrial goods sector underperformed, shedding 0.60 per cent week-on-week as mild profit-taking in the sector tempered its recent rally-driven momentum.

On the price movement chart, Golden Guinea Breweries Plc, emerged as the week’s top gainer, soaring by an impressive 60 per cent. Other significant gainers included African Prudential, which advanced by 59 per cent, Tantalizer (+52 per cent), Conoil (+34 per cent) and Coronation Insurance, which added 25 per cent to its value.

On the flip side, NSL Technology led the decliners, losing 23 per cent, followed by Austin Laz (-15 per cent), Haldane McCall (-11 per cent), Julius Berger (-10 per cent) and John Holt, which also declined by 10 per cent.

Analysts at Cowry Asset Management Limited said: “Looking forward, the Nigerian equities market is well-positioned to sustain its bullish momentum in the coming week. The ongoing year-end rally, coupled with expectations of strong full-year corporate performance, is likely to support buying activities.

“Investors are also expected to closely monitor macroeconomic indicators, particularly the release of November 2024 inflation figures, which could shape sentiment and influence portfolio adjustments. It added that developments in the foreign exchange market will similarly play a critical role as market participants evaluate the impact of economic data on investment decisions.”

Also last week, a total turnover of 2.7 billion shares worth N49.8 billion was recorded by 43,298 deals by investors on the floor of the exchange, in contrast to a total of 3.9 billion units, valued at N87.7 billion that was exchanged in 43,868 deals on December 6, 2024.

The financial services industry (measured by volume) led the activity chart with 1.7 billion shares valued at N18.9 billion traded in 19,203 deals; thus contributing 62.5 per cent to the total equity turnover volume.

The ICT industry followed with 286.6 million shares worth N6.3 billion in 2,603 deals. Third place was the oil and gas industry, with a turnover of 209.4 million shares worth N10.8 billion in 5,803 deals.

Trading in the top three equities namely Coronation Insurance Plc, e-Tranzact International Plc and FCMB Group Plc (measured by volume) accounted for 865.665 million shares worth N3.629 billion in 1,149 deals, contributing 31.7 per cent to the total equity turnover volume.

A total of 167,935 units of Exchange Traded Products (ETPs) valued at N6.5 million were traded in 78 deals compared to 19,430 units valued at N6.3 million transacted last week in 56 deals.

A total of 33,533 units of bonds valued at N37.3 million were also traded in 25 deals compared to 30,281 units valued at N30.9 million transacted last week in 19 deals.

51 equities appreciated during the week, the same as 51 equities in the previous week. 35 equities depreciated higher than 30 in the previous week, while 67 equities remained unchanged, lower than 72 recorded in the previous week.