The Nigerian stock market experienced a positive shift last week despite mixed trading sentiments, as investors responded to inflation data and the Central Bank of Nigeria’s (CBN) monetary policy decisions.
The Nigerian Exchange (NGX) All-Share Index (ASI) climbed by 0.41% over the week, closing at 108,497.40 points. Analysts attributed this growth to investors adjusting their portfolios due to fluctuating stock prices, expectations around inflation trends, and monetary policy updates.
Meanwhile, the total market capitalization of listed equities rose by 0.29% to N67.61 trillion, despite the cancellation of 166.95 million units of Dangote Cement Plc shares. According to financial analysts at Cowry Asset Limited, strong bargain-hunting contributed to this increase, with investors recording a N95.93 billion gain over two trading sessions.
Despite this growth, market breadth remained weak, with 58 stocks declining while only 27 advanced. Trading activity also slowed, as the total volume of shares traded for the week dropped by 17.12% to 2.0 billion units, while the total trade value fell by 10.9% to N49.89 billion, signaling reduced investor participation.
Mixed Sector Performance
Performance across different market sectors was mixed. The Consumer Goods Index led the gainers, rising by 6.55%, followed by the Insurance Index (+1.47%) and the Industrial Index (+0.05%). The strongest performers in these sectors included Dangote Sugar, BUA Foods, Sovereign Trust Insurance, Wapic Insurance, Beta Glass, RT Briscoe, and Nigerian Breweries.
On the flip side, the Banking Index suffered the most, dropping by 3.22% week-on-week, followed by the Oil & Gas Index (-2.87%) and the Commodity Index (-0.50%). The downturn in these sectors was driven by sell-offs in stocks like Aradel Holdings, Zenith Bank, Eterna Oil, AccessCorp, Fidelity Bank, and Conoil as investors readjusted their portfolios.
Top Gainers and Losers
The biggest winners for the week were Abbey Mortgage Bank (+16.1%) and Dangote Sugar (+15.0%), followed by BUA Foods (+11.9%), Sovereign Trust Assurance (+11.9%), and Champion Breweries (+9.9%).
On the other hand, Union Dicon Salt recorded the worst performance, losing 25.0%, followed by Ikeja Hotel (-21.4%), UPDC (-18.0%), Academy Press (-16.5%), and Oando (-15.7%).
Market Outlook
Looking ahead, analysts at Cowry Asset Limited predict a mixed trading pattern in the coming week, as investors monitor upcoming corporate earnings reports and dividend declarations.
