Stock Market Records N2.84trn Increase in One Week on Positive Momentum

Kayode Tokede 

The Nigerian stock market, last week, sustained its positive momentum run for the sixth consecutive week, pushing the market capitalisation by N2.84 trillion on renewed investor interest in Industrial ,Consumer Goods Insurance stocks- following the official signing of the Nigerian Insurance Act into law.

As a result, the Nigerian Exchange Limited All-Share Index  (NGX ASI) advanced by 3.18 per cent week-on-week to close at 145,754.91 basis points, having touched a fresh high of 146,570.71 basis  points during the week.

Correspondingly, market capitalisation surged by N2.84 trillion to close the week at N92.215 trillion, bringing the year-to-date return to an impressive 41.61 per cent.

According to the Exchange weekly report, a total turnover of 8.736 billion shares worth N134.577 billion in 180,290 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 4.847 billion shares valued at N149.755 billion that exchanged hands previous week in 174,267 deals.

However,  investor sentiment remained largely positive throughout the week, as reflected in the market breadth which showed 66 gainers against 41 decliners.

Mutual Benefits Assurance led the gainers table by 60.44 per cent to close at N2.92, per share. AIICO Insurance followed with a gain of 59.82 per cent to close at N3.50, while Royal Exchange went up by 59.33 per cent to close to N2.39, per share.

On the other side, Livingtrust Mortgage Bank led the decliners table by 24.13 per cent to close at N5.00, per share. Academy Press followed with a loss of 18.18 per cent to close at N9.00, while The Initiates Plc (TIP) declined by 12.73 per cent to close at N12.00, per share.

Looking ahead to the new week, Cowry Asset Management Limited said, “we anticipate a mixed performance in the equities market as bulls and bears continue to contest market direction.

“However, the prevailing sentiment remains broadly optimistic, with investors likely to sustain their focus on fundamentally strong sectors, particularly Insurance, Consumer Goods, and select Industrial tickers.

“The market is also expected to witness further portfolio rotations as investors reposition based on evolving sectoral opportunities, corporate earnings expectations, and macroeconomic cues. The Insurance sector in particular is expected to remain in focus, given its reform-driven outlook and recent price momentum.”

Also, Afrinvest Limited stated that ‘this week, we expect the bourse to halt its 11-week bullish run, as several stocks now has limited upside potential.’

In the week ahead, analysts at Cordros Research  said, “we expect choppy trading, as investors book profits on recent gainers, though, bargain hunting in select counters is likely to persist.

“Over the medium term, we expect the sustained moderation in fixed income yields to support continued rotation into equities.”