The Nigerian stock market witnessed a significant surge last week, as investors’ total portfolio value expanded by over ₦512 billion, buoyed by renewed interest in large-cap and mid-tier stocks.
Despite a reduced trading window, the Nigerian Exchange (NGX) ended the week in positive territory. The All-Share Index climbed 0.71% to a new record of 115,429.54 points, while market capitalization also soared, closing at ₦72.79 trillion.
Market analysts linked the upswing to strong investor sentiment, driven by expectations of positive macroeconomic developments. Cowry Asset Management noted that the year-to-date return has now reached 12.15%, reinforcing the Nigerian stock market’s status as an attractive investment alternative compared to fixed-income instruments.
The week recorded a bullish breadth of 1.41x, with 55 stocks gaining compared to 39 that declined. Analysts indicated that demand was skewed toward fundamentally sound companies and those with recent corporate events catalyzing interest.
Trading volume and value dipped by 35.77% and 32.31%, respectively, totaling 2.05 billion shares worth ₦50.68 billion. However, deal count rose by 1.47% to 64,702, signaling increased investor participation in small-to-mid-cap counters ahead of key economic indicators.
The performance across sectors was mixed. The oil and gas segment declined by 1.22%, largely due to profit-taking in CONOIL and ARADEL, while the insurance index shed 0.11%, impacted by selloffs in WAPIC and CORNERSTONE.
Conversely, the industrial and consumer goods sectors gained ground. Stocks like BERGER Paints, MAYBAKER, HONEYFLOUR, and DANGOTE SUGAR attracted buying interest. BUACEMENT in particular served as a pillar of strength for the industrial index, underscoring investor confidence in blue-chip stocks.
Meanwhile, the banking sector remained largely flat. Losses recorded in tier-1 institutions such as ETI, ACCESSCORP, ZENITH, and FBNH neutralized gains observed in tier-2 banks, as investors treaded cautiously ahead of inflation data and anticipated changes in monetary policy.
In terms of individual stock performance, Legend Internet emerged as the week’s top gainer, appreciating by 32.8%, followed by BERGER Paints at 30.7% and ELLAHLAKES at 27.4%. OANDO and Fidson Healthcare also posted notable gains due to heightened speculative interest.
On the downside, stocks like John Holt, IMG, RT Briscoe, NNFM, and CONOIL led the losers’ list, reflecting investor rotation and profit-taking.
Cowry Asset Limited forecasts a mildly bullish outlook for the coming week, contingent on favorable inflation figures. A lower-than-expected inflation print could further dampen interest in fixed-income products and push more capital into equities.
However, the firm also warned of intermittent selloffs as investors continue to reassess valuations post-rally. It recommended accumulating stocks with strong earnings records and consistent dividend payouts to optimize long-term portfolio value.
