The Nigerian Exchange Limited (NGX) sustained its bullish trend for the seventh consecutive day on Monday, resulting in a daily gain of N365 billion and an accumulated surge of N3.5 trillion since the rally commenced on December 28, 2023.
As the market closed on Monday, the benchmark index, the All-Share Index, surpassed the 80,000 mark, settling at 80,328.57 basis points. The market capitalization rose by 0.83 percent to reach N43.957 trillion.
The trading volume also experienced a notable increase of 33.33 percent, totaling 1,190,164,298 units valued at over N15.256 billion, exchanged in 16,081 deals.
Key contributors to the day’s market performance were Transcorp, Fidelity Bank, Access Holdings Plc, FCMB Group, and United Bank for Africa, contributing to the increased activity in banking stocks.
Market Breadth, reflecting investor sentiment, remained positive with 54 gainers and 17 losers.
Analysts interpret the ongoing upward trajectory as indicative of substantial demand for Nigerian stocks, setting the stage for the imminent reporting and dividend earning season. The opening week of the New Year not only witnessed remarkable market highs but also surpassed historical benchmarks.
Top gainers on the day included Cornerstone Insurance Plc, Cutix Plc, Julius Berger, LASACO, Omatek Plc, and Jaiz Bank, each gaining 10 percent in market value.
The list of losers featured Daar Communications, which lost 9.30 percent, Eterna Oil, down 8.79 percent, Computer Warehouse Group, down 7.05 percent, PZ Cussons, down 6.90 percent, and Fidelity Bank stocks, which lost 5.99 percent.
Commenting on the bullish run of the market, financial expert Brain Essien suggested that it might be reasonable to anticipate a market correction this year.
Essien noted the historical bullish run, saying, “The Nigerian Capital Market, Primary and Secondary, more particularly the NGX, has had quite an unexpected but stellar 52-week run. Thus, concerns for the 2024 fiscal season are quite valid considering that this run started as far back as 2020.”
However, he added that the NGX still has potential for growth in 2024, depending on the implementation of budget promises and economic stimulus efforts by the Tinubu Administration.
Researchers at Cowry Asset Management Limited projected a mixed sentiment in the market, potentially influenced by profit-taking activities. They highlighted the approaching Monetary Policy Committee meeting in January and the impending earnings and reporting season as factors that could shape market dynamics in the near term.
