Value hunters in the Nigerian Exchange’s equities division, or stock market, gained over N455 billion as a result of robust buy side activity. The Nigerian Exchange’s (NGX) stocks segment maintained its upward trend last week, boosted by consistent purchase impulses.
Stockbrokers claimed that the latest inflation statistics, which reduced for the second consecutive month to 32.15%, sparked a positive reaction among equity investors.
Furthermore, quarter-end window dressing activities aided the positive view, propelling the NGX All-Share Index (ASI) up 0.81% week on week, from 97,456.62 points to 98,247.99 points, according to Cowry Asset Limited.
Stockbrokers revealed equities market’s year-to-date return inched higher to 31.39% as buying momentum heated up on the Nigerian Exchange platform. However, despite the positive market performance, breadth was slightly negative, with 41 gainers against 40 losers.
Trading activity declined, with average traded volume falling by 28.02% to 1.86 billion units. Total value of stocks traded in the equities market dropped by 24.92% to N38.44 billion, and total deals fell by 20.56% to 40,211 trades for the week.
Sectorial Performance
The Banking Index led sectoral gains, rising by 1.26% week-on-week, driven by strong investor demand. The Insurance sector followed with a 0.86% increase, while the Oil & Gas sector posted a marginal gain of 0.02%.
Conversely, the Consumer Goods and Industrial Goods sectors experienced setbacks, with declines of 0.77% and 0.13%, respectively. On the stock level, CAVERTON (+45.3%), FIDELITYBK (+24.2%), FIDSON (+21.8%), VITAFOAM (+21.5%), and MEYER (+20.9%) emerged as the top gainers for the week.
On the left, NNFM (-19.0%), MECURE (-18.2%), TANTALIZER (-14.1%), RTBRISCOE (-12.9%), and NIDF (-9.9%) were among the key laggards, as investors rebalanced their portfolios in response to market dynamics.
“With the market displaying resilience amid positive macro signals, we anticipate continued bullish sentiment in the coming week, driven by portfolio rebalancing and strategic positioning in value-driven stocks”, Cowry Asset Limited said.
Stockbrokers said the recent dip in inflation and favorable quarter-end activities suggest that investor optimism may persist, creating entry opportunities for those seeking fundamentally sound investments.
Overall, the equities capitalisation of the Nigerian Exchange gained N454.86 billion to close at N56.47 trillion on Friday.
