Analysts on the Nigerian capital market said the current bullish trend is expected in anticipation of Q4, 2024 unaudited financial results and preparations for the dividend earning season. The market, last week, extended its bullish run as this performance builds on an impressive 37.65 per cent year-on-year gain in 2024, which notably outpaced the country’s inflation rate of 34.60 per cent as of November 2024. The rally comes as investors assess Nigeria’s macroeconomic fundamentals and position themselves for opportunities ahead of Q4, 2024 unaudited financial results, with banking stocks drawing the bulk of investor interest.
Analysts Optimism
Looking ahead, Cowry Assets Management Limited said, “We expect the bullish momentum in the local bourse to persist in the coming week, supported by anticipation of Q4 2024 unaudited financial results and preparations for the dividend earning season.
“Positive sentiment is likely to prevail as stocks continue to reach new historical highs, bolstered by favourable market valuations and outlooks. Nonetheless, we advise investors to focus on fundamentally sound stocks to maximise returns amidst the ongoing rally.”
The chief operating officer of InvestData Consulting Limited, Ambrose Omordion said the Nigerian stock market displayed positive growth last week, with significant increases in both the NGX All-Share Index and market capitalisation.
He added that “as the market progresses into the year, investors will be watching closely for further developments in the local economy and the performance of key industries, particularly in light of global economic trends.”
Last Week’s Trading Activities
The All-Share Index gained by 1.80 per cent week-on-week (W-o-W) to close at 105,451.06 points. Likewise, market capitalisation rose by N1.14 trillion to close the week at N64.303 trillion.
On the sectoral front, performance was largely negative. The NGX Banking index recorded a weekly gain of 1.94 per cent week-on-week. However, the NGX Insurance index led the decliners, shedding 6.91 per cent week-on-week. Elsewhere, the NGX Consumer Goods and NGX Oil & Gas indices both recorded 0.34 per cent weekly declines. Meanwhile, the NGX Industrial index fell slightly by 0.26 per cent W-o-W.
The market breadth for the week was positive as 51 equities appreciated in price, 39 equities depreciated in price, while 62 equities remained unchanged. Multiverse Mining and Exploration led the gainers table by 53.42 per cent to close at N12.35, per share. Honeywell Flour Mill followed with a gain of 31.67 per cent to close at N10.02, while DAAR Communications went up by 25.71 per cent to close to 88 kobo, per share.
On the other side, SUNU Assurance led the decliners table by 36.52 per cent to close at N7.30, per share. Caverton Offshore Support Group and Consolidated Hallmark Holdings followed with a loss of 15.00 per cent each to close at N2.38 and N3.40 respectively, while R T Briscoe declined by 14.33 per cent to close at N2.57, per share.
Overall, a total turnover of 4.698 billion shares worth N85.043 billion in 72,562 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 2.618 billion shares valued at N69.742 billion that exchanged hands the previous week in 47,953 deals.
The Financial Services Industry (measured by volume) led the activity chart with 3.470 billion shares valued at N40.791 billion traded in 34,364 deals; contributing 73.86 per cent and 47.97 per cent to the total equity turnover volume and value respectively. The Services industry followed with 407.032 million shares worth N2.226 billion in 4,996 deals, while the ICT Industry traded a turnover of 237.680 million shares worth N3.628 billion in 5,280 deals. Trading in the top equities; Wema Bank, FBN Holdings (FBNH) and Universal Insurance accounted for 1.679 billion shares worth N20.838 billion in 4,922 deals, contributing 35.74 per cent and 24.50 per cent to the total equity turnover volume and value respectively.
