The Nigerian stock market continued its upward trajectory last week, with investors raking in a substantial ₦1.75 trillion in market value, signaling increasing confidence in key sectors. The Nigerian Exchange (NGX) All-Share Index (ASI) climbed by 2.35% week-on-week to an all-time peak of 118,138.22 points, bolstered by renewed bullish sentiment.
Despite a rocky start to the week due to a regulatory directive from the Central Bank of Nigeria (CBN) that restricted dividend payouts and new offshore investments by banks with compliance issues, market momentum was quickly restored. Cowry Asset Limited disclosed that the restrictions were aimed at financial institutions violating the Single Obligor Limit or those with unresolved COVID-19-era forbearance loans.
Initial panic sparked a brief selloff in banking stocks, but subsequent reassurances from affected lenders and a confidence-boosting statement from the apex bank affirming the sector’s soundness reversed the downward trend.
The market’s resurgence saw its total capitalisation expand by 2.40%, closing at ₦74.53 trillion. The year-to-date return on the ASI rose to 14.78%, demonstrating resilience amid economic and policy fluctuations.
Investor engagement reached new highs, as turnover data reflected a 65.62% surge in traded volume to 3.39 billion shares and a 114.52% jump in value to ₦108.72 billion. The total number of deals executed soared by 47.79% to 95,625.
Sectoral indices were broadly bullish. The Oil & Gas Index led gains at 5.27%, driven by strong performances from SEPLAT and MRS. The Commodity Index rose 4.37%, while the Banking Index advanced by 3.58%, buoyed by renewed investor interest in GTCO and Stanbic IBTC.
Other sectors posting solid gains included Insurance (+2.37%) and Consumer Goods (+2.16%), driven by movements in Custodian and Ellah Lakes. However, the Industrial Goods Index dipped by 0.36%, weighed down by losses in John Holt, Enamelware, RTBriscoe, and Dangote Cement.
Top weekly gainers included Ellah Lakes (+56.8%), LEGEND (+48.3%), BERGER (+41.5%), LivingTrust (+30.8%), and FIDSON (+28.9%). Decliners were led by NNFM (-25.5%), JOHNHOLT (-18.4%), VFDGROUP (-13.8%), SUNUASSUR (-12.8%), and CONOIL (-12.6%).
Looking ahead, Cowry Research anticipates a possible liquidity boost in the equities space due to over ₦283 billion in maturing NT-bills and the absence of a new auction. Additionally, dividend season and undervalued equities may spur further buying activity. However, analysts advised a cautious, fundamentals-focused strategy amid continuing macroeconomic uncertainties.
