The Nigerian Exchange (NGX) grew by about N708 billion on the back of the latest demand surge ahead of fourth quarter earnings releases. The domestic bourse closed the week higher as the benchmark index posted a 1.19% uptick to settle at 99,378.06 points.
The market’s performance was predominantly driven by strong demand in CONOIL (+33.52%), ARADEL (+18.28%), and MTNN (+3.47%), stockbrokers said. The momentum spurred by improved investors sentiment nudged year-to-date performance to 32.90% with 51 gainers against 35 laggards during the week.
The NGX All-Share Index (ASI) advanced by an impressive 1.19% week-on-week to close at 99,378.06 points. At this level, stock market analysts observed that key index is inching closer to the psychologically significant 100,000-point mark.
This upward trajectory reflects robust buying activity across various sectors, underpinned by improved investor sentiment and favourable market dynamics, Cowry Asset Limited said. Equities investors actively repositioned themselves for year-end opportunities in the local bourse.
Trading activities were subdued as investors engaged in sectoral rotation amidst weak market internals, according to stockbrokers. The total traded volume for the week declined by 30.12% to 2.72 billion units, while the total value of transactions dropped significantly by 43.41% to N49.66 billion.
The number of deals also edged lower by 1.74%, with a total of 43,103 transactions recorded. Stock analysts at Cowry Asset Limited said in a note to investors that the tepid trading mood highlights the cautious approach ahead of inflation data and the traditional “Christmas blues.”
Sectoral performance was mixed but predominantly bullish. The oil and gas sector emerged as the star performer, posting a robust weekly gain of 7.61%, driven by increased demand for energy stocks with stronger fundamentals.
The insurance sector followed closely, appreciating by 7.52% week on week, while the consumer goods and banking indices posted modest weekly gains of 1.01% and 0.16%, respectively, as investors continued to favour blue-chip stocks.
Conversely, the industrial goods sector underperformed, shedding 0.60% week on week as mild profit-taking in the sector tempered its recent rally-driven momentum. At the stock level, Golden Guinea Breweries emerged as the week’s top gainer, soaring by an impressive 60%.
Other significant gainers included African Prudential, which advanced by 59%, Tantalizer (+52%), Conoil (+34%), and Coronation Insurance, which added 25% to its value.
On the flip side, NSL Technology led the decliners, losing 23%, followed by Austin Laz (-15%), Haldane McCall (-11%), Julius Berger (-10%), and John Holt, which also declined by 10%.
The Nigerian equities market is well-positioned to sustain its bullish momentum in the coming week, Cowry Asset Limited told investors in a note. Stockbrokers emphasised that the ongoing year-end rally, coupled with expectations of strong full-year corporate performance, is likely to support buying activities.
Investors are also expected to closely monitor macroeconomic indicators, particularly the release of November 2024 inflation figures, which could shape sentiment and influence portfolio adjustments.
The investment firm added that developments in the foreign exchange market will similarly play a critical role as market participants evaluate the impact of economic data on investment decisions. Overall, the equities market capitalisation increased by N707.6 billion to close at N60.2 trillion.
Source: Marketforces
