In a remarkable start to the new year, investors on the Nigerian Exchange Limited have experienced significant gains, amounting to N1.8 trillion, with year-to-date returns reaching double digits in less than a month. This surge reflects a sustained bullish trend in the market.
As of the close of trading on Friday, the benchmark index, the All-Share Index, reached 83,042.96 basis points, resulting in year-to-date returns of 11.06%. The market capitalization of listed equities also saw a notable increase, rising by 4.24% week-on-week to N45.442 trillion.
Market activity during the first weeks of the year demonstrated a positive level of participation, with a total of 5.719 billion units of shares, valued at N88.828 billion, traded in 80,064 deals. This represents a considerable increase compared to the previous week when investors traded 3.320 billion shares worth N41.755 billion in 46,994 deals.
The uptick in investor sentiment is evident through the above-average traded volume, signaling positive market breadth and a surge in buying sentiment. Investors are strategically positioning themselves for both dividend income and capital gains.
Benefiting from the positive momentum, investors gained a substantial N1.85 trillion in four out of five trading sessions. Although the market experienced a dip in market cap on Thursday, the overall trend remains optimistic.
The financial services sector led the bullish trend across sectors, with consumer goods, insurance, and banking stocks showing appreciations of 9.60%, 7.63%, and 5.10%, respectively. Key equities such as Cadbury Nigeria Plc, Veritaskap, Linkage Assurance Plc, and Mcnichols Plc contributed to these gains.
Similarly, the industrial goods sector recorded a 4.80% increase, driven by heightened buying interest in Julius Berger, RT Briscoe, and Lafarge Africa. However, the oil & gas index experienced a decline due to sell pressure in TotalEnergies Marketing.
The top three equities – Transnational Corporation Plc, FCMB Group Plc, and Fidelity Bank Plc – accounted for 1.380 billion shares worth N17.741 billion in 12,442 deals, contributing 24.12% and 19.97% to the total equity turnover volume and value, respectively.
