Market capitalization of the Nigerian Exchange (NGX) increased to N39.17 trillion as investors’ wealth increased by almost N65 billion due to persistent positive trend. The local exchange increased by 0.17% on a weekly basis, resulting in a year-to-date return that is much more than the annual inflation rate of 27.33%.
Stockbrokers interpret the current bullish trend as a reflection of market confidence in the economic outlook, which is further enhanced by the customary euphoria surrounding the Christmas season. The Nigerian Exchange All-Share Index hit 71,230.48 points last week as investors processed the country’s third-quarter economic data, which was just released.
“We observed strategic moves by investors engaging in portfolio reshuffling and rebalancing activities, anticipating the year-end, dividend season, and the potential impact of the forthcoming Santa-Claus rally”, Cowry Asset Limited said in its market update.
Stockbrokers said that equities investors’ bargain-hunting efforts resulted in a noteworthy N64.61 billion overall profit, which increased the index’s excellent 38.98% year-to-date return. According to Afrinvest’s market data, activity levels fluctuated as average volume traded increased 19.7% week over week to ₦4.2 billion while value traded decreased by 18.2% to 562.7 million units.
In terms of value, MTNN (₦3.2 billion), ZENITH (₦1.9 billion), and GTCO (₦1.8 billion) topped the top three traded stocks by volume: UNIVINSURE (258.2 million units), VERITASKAP (188.1 million units), and UNITYBNK (141.9 million units).
Despite the favorable general performance of the market, the investment business saw a little decline of 0.53% in the Consumer Goods index as a result of particular unfavorable pricing movements.
Conversely, the Insurance index emerged as the week’s leading gainer, experiencing a 4.07% week-on-week increase, primarily driven by gains in SOVRENINS, ROYALEX, and SUNUASSUR.
The Banking and Industrial Goods indexes recorded gains of 1.94% and 0.04%, respectively, propelled by notable price increases in UNITYBNK, DEAPCAP, GTCO, MULTIVERSE, and BETAGLASS.
Elsewhere, the level of trading activity witnessed a 19.77% increase in total traded volume, reaching 2.4 billion units in weekly deals, with the number of trades advancing by 1.43% to 33,230. However, the weekly traded value experienced a decrease of 18.16%, totalling N22.67 billion.
Top performers for the week, included MECURE, MULTIVERSE, and UNITYBNK, with each securing an impressive gain of 61%, 60%, and 57%, respectively. Conversely, stocks like THOMASWY, ELLAHLAKES, and STANBIC faced declines in their share prices, experiencing price decreases of -42%, -10%, and -7%, respectively, on a week-on-week basis.
Looking ahead, Cowry Research sees a sustained bullish trend in the Nigerian stock market with continued buying interest on blue-chip stocks amid ongoing asset and sector rotations. Naira Devaluation Deepens Economic Crisis in Nigeria
Cowry Asset Limited said the anticipation is set against the backdrop of the upcoming Santa Claus rally and year-end window-dressing activities orchestrated by fund managers. Overall, the equities market capitalisation inched higher by N64.61 billion to N39.17 trillion.
