The Nigerian Exchange (NGX) experienced an expansion of approximately N438bn, as the release of Tier-1 bank earnings bolstered investor sentiment in the stock market.
The local bourse witnessed a notable recovery in the recently concluded week, reversing its previous downward trend. The benchmark All-Share Index (ASI) increased by 0.66% on a week-on-week basis, closing at 105,660.64 points.
Stockbrokers attributed the uptrend to a series of corporate actions within the banking sector, as major financial institutions released their audited 2024 full-year earnings, showcasing strong financial performances and attractive dividend declarations.
Additionally, quarter-end portfolio rebalancing and window-dressing activities contributed to the bullish sentiment, enhancing investor confidence, according to Cowry Asset Limited. With the bulls dominating three out of five trading sessions, the year-to-date (YTD) return for the All-share index improved to 2.66%, reflecting renewed optimism among investors.
Market participation remained robust, as evidenced by a positive market breadth of 1.19 times, with 43 stocks advancing, outpacing 36 decliners. Trading activity also experienced a sharp increase, with the total number of transactions rising by 7.48% week-on-week to 61,309 deals.
Similarly, the volume of shares traded saw a 159.2% jump to 7.52 billion units, while the total value of traded equities surged by an astounding 730.04% to N398.95 billion.
The heightened market activity was primarily driven by increased institutional participation and repositioning in anticipation of dividend pay-outs. From a sectoral standpoint, performance was predominantly bullish, with four of the six major indices closing in positive territory.
The banking Index emerged as the top-performing sector, advancing by 4.28% week-on-week, supported by investor accumulation of banking stocks such as GTCO, FCMB, FIDELITYBNK, and FIRSTHOLDCO, following their impressive financial disclosures.
The insurance Index followed closely, gaining 3.21%, while the Consumer Goods and NGX Industrial indices edged up by 0.12% and 0.01%, respectively, driven by price appreciation in stocks like MBENEFIT, SUNUASSURANCE, CHAMPION, IKEJAHOTEL, and UPDC.
On the contrary, the Oil & Gas Index recorded a 1.63% decline, weighed down by sell-offs in key players such as ETERNA, OANDO, and ARADEL, as investors exhibited caution amid fluctuating global oil prices.
Similarly, the Commodity Index slipped by 0.76%, reflecting some profit-taking activities. Despite the overall bullish sentiment, certain stocks stood out as major gainers for the week.
MBENEFIT led the market with an impressive 56.7% gain, followed by SUNU Assurance (+33.3%), ABBEYBDS (+31.4%), ROYALEX (+31.3%), and ETRANZACT (+19.8%). Conversely, some stocks faced steep declines as investors booked profits or exited positions.
AFRIPRUD was the worst-performing stock of the week, shedding 60.5%, while CWG declined by 11.1%, JOHNHOLT dropped by 10.0%, UHOMREIT fell by 9.9%, and UCAP lost 9.8%.
Cowry Asset Limited indicated that the bullish trend is expected to persist as the market fully enters the earnings season, with dividend announcements likely to sustain investor interest in blue-chip stocks. However, portfolio rebalancing activities and profit-taking could introduce some volatility as investors assess corporate earnings results and macroeconomic data.
Overall, the equities market capitalization of the Nigerian Exchange rose by N437.5 billion to close at N66.26 trillion.
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