The Nigerian Exchange (NGX) experienced a robust increase of approximately N708 billion, driven by a surge in demand ahead of the release of fourth-quarter earnings reports. The domestic stock market closed the week on a high note as the benchmark All-Share Index (ASI) rose by 1.19%, settling at 99,378.06 points.
This growth was largely propelled by significant demand for shares of CONOIL (+33.52%), ARADEL (+18.28%), and MTNN (+3.47%), according to stockbrokers. The positive momentum, underpinned by improved investor sentiment, boosted the year-to-date performance to 32.90%, with 51 gainers outperforming 35 decliners during the week.
Stock analysts observed that the NGX ASI is edging closer to the psychological milestone of 100,000 points. This upward movement reflects heightened buying activity across various sectors, supported by favorable market conditions and investor optimism, noted Cowry Asset Management. Investors were seen repositioning their portfolios to capitalize on year-end opportunities in the local bourse.
Trading Activity Overview
Trading activity showed a cautious trend as sectoral rotation dominated investor strategies amidst weak market internals. The total trading volume dropped by 30.12% to 2.72 billion units, while the total transaction value declined sharply by 43.41% to N49.66 billion. Additionally, the number of deals fell marginally by 1.74%, with 43,103 transactions recorded.
Cowry Asset Management highlighted the subdued trading sentiment, attributing it to concerns over upcoming inflation data and the traditional “Christmas blues” period, which often dampens market activity.
Sectoral Performance
Sectoral performance during the week was mixed but leaned bullish. The oil and gas sector led the market, recording a strong 7.61% weekly gain, driven by heightened demand for energy stocks with solid fundamentals. The insurance sector followed closely, appreciating by 7.52%, while the consumer goods and banking sectors posted modest gains of 1.01% and 0.16%, respectively, as blue-chip stocks remained attractive to investors.
Conversely, the industrial goods sector underperformed, shedding 0.60% due to mild profit-taking that tempered its recent rally-driven momentum.
Top Gainers and Losers
Golden Guinea Breweries emerged as the top-performing stock of the week, surging by an impressive 60%. Other notable gainers included African Prudential (+59%), Tantalizer (+52%), Conoil (+34%), and Coronation Insurance (+25%).
On the other hand, NSL Technology led the decliners, dropping by 23%, followed by Austin Laz (-15%), Haldane McCall (-11%), Julius Berger (-10%), and John Holt (-10%).
Outlook for the Coming Week
Stockbrokers remain optimistic about the market’s ability to sustain its bullish momentum in the coming week. The ongoing year-end rally, coupled with expectations of strong full-year corporate performance, is anticipated to fuel further buying activities. Investors are advised to keep a close watch on macroeconomic indicators, particularly the November 2024 inflation figures, which are likely to influence market sentiment and portfolio adjustments.
Cowry Asset Management also noted that developments in the foreign exchange market will play a critical role in shaping investment decisions. Overall, the NGX’s market capitalisation rose by N707.6 billion, closing the week at N60.24 trillion.
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