The positive momentum in the Nigerian Exchange continued last week, with the All-Share Index surpassing the historic 100,000 points mark and investors reaping gains totaling N4.3tn.
The market witnessed a surge in buy sentiment as investors strategically positioned themselves in dividend-paying stocks ahead of the upcoming earnings season.
Stocks of key players such as Dangote Cement, Seplat, BUA Cement, BUA Foods, and Eterna Plc recorded notable appreciation during the week, fueled by increased investor appetite. The All-Share Index (ASI) and market capitalization experienced an 8.32% week-on-week rise, closing at 102,401.88 and N56.04tn, respectively, further strengthening year-to-date returns to N36.96%.
Among the sectors monitored, the Industrial index outperformed others, registering a 23.20% week-on-week gain, driven by price increases and growing interest in Dangote Cement and BUA Cement. The Oil & Gas and Consumer Goods Indexes followed suit, rising by 11.57% and 5.29%, respectively, driven by gains in Seplat, JapaulGold, Eterna, BUA Foods, Nascon Allied Industries, and Geregu Power.
However, the banking and insurance indexes experienced a retreat of 1.63% and 4.10% week-on-week, attributed to price declines in Wema Bank, GTCO, Royal Exchange, and Consolidated Hallmark Holdings Plc.
Despite the overall positive performance, market participation levels diminished, following a similar trend observed in the previous week. A total turnover of 2.981 billion units of shares valued at N57.87bn in 67,962 deals was recorded, compared to the previous week’s 5.179 billion shares valued at N77.80bn in 79,012 deals.
Top-performing stocks at the close of the week included Tripple Gee (+32.24%), Dangote Cement (+28.82%), Sunu Assurances Plc (+25%), JapaulGold (+23.20%), and Seplat (+21%). Conversely, stocks such as VeritasKap (-23.38%), The Initiates Plc (-21.77%), Cadbury (-20.86%), and DEAP CAP (-19.19%) experienced declines.
The market anticipates that the positive trading trend will continue into the upcoming week as investors eagerly await more corporate earnings releases. However, analysts at Cowry Assets have projected a mixed trend with a potential for profit-taking. They anticipate investors engaging in sectoral rotation, capitalizing on stocks experiencing pullbacks to strategically position themselves. This rotation strategy is expected to create buying opportunities, especially in anticipation of upcoming releases during the corporate reporting season.
