Equities market rebounds, gains N147bn in one week
The Nigerian stock market staged a formidable rebound on the last trading day last week, as the All-Share Index (ASI) climbed 0.22per cent to close at 105,660.64 points, effectively halting a four-week losing streak.
This resurgence propelled market capitalization by an equivalent 0.22% to an impressive N66.26 trillion, injecting N147billion into investors’ portfolios.
The week’s rally was largely fueled by renewed investor interest in banking stocks, catalyzed by the release of full-year 2024 audited financials and dividend declarations. Notably, GTCO soared 18.2per cent while ZENITHBANK gained 3.1%, lifting the ASI by 0.7per cent week-on-week. Consequently, month-to-date (MTD) and year-to-date (YTD) returns settled at -2.0per cent and +2.7per cent, respectively.
Driving the market’s upward momentum were top gainers Abbeybds, Updc, Nnfm, Mbenefit, and Oyalex, while Afriprud, Intenegins, Cadbury, Updcreit, and Rtbriscoe led the laggards. Trading activity surged, with the volume of shares traded rising 29.26% and total market value skyrocketing 135.45%, as investors executed 13,244 deals totaling 547.57 million shares valued at N21.62 billion.
Sectorally, the Banking sector outperformed, surging 5.61% on strong performances from GTCO (+7.08%), STERLINGNG (+2.83%), and ACCESSCORP (+1.59%). The Consumer Goods sector advanced 0.33%, driven by NNFM (+9.96%) and NASCON (+6.86%), while the Industrial Goods index edged up 0.01%. Conversely, the Insurance sector slid 1.28%, weighed down by INTENEGINS (-10.00%) and GUINEAINS (-6.85%), and Oil & Gas extended its downturn, shedding 1.65%, bringing its YTD loss to 9.34%—the worst-performing sector thus far.
Market liquidity witnessed a remarkable uptick, with trading volume and value escalating 161.5% and 743.1% week-on-week, respectively, signaling heightened investor engagement. However, market breadth at 0.75 (UD Ratio of 1.76) suggested a more cautious sentiment, as declining stocks outnumbered gainers.
The 14-day Relative Strength Index (RSI) at 46.45 suggests neutral momentum, while the 7-day Moving Average (MA) of 105,361.22 sits below the 20-day (105,939.48) and 50-day (105,995.98) MAs, signaling near-term resistance. These technical indicators advocate a measured approach amid potential market volatility.
The week witnessed a staggering total turnover of 7.521 billion shares valued at ₦398.949 billion across 61,312 deals, dwarfing last week’s 2.902 billion shares worth ₦48.064 billion in 57,044 deals. The Industrial Goods sector dominated, contributing 65.46% and 83.22% of total equity turnover volume and value, respectively, followed by the Financial Services and Services industries.
Top traded equities included Lafarge Africa Plc, Sovereign Trust Insurance Plc, and Cutix Plc, accounting for 5.546 billion shares valued at ₦332.381 billion across 1,300 deals—representing 73.73% and 83.31% of total turnover volume and value, respectively.
Looking ahead, the market is poised for volatile swings in the upcoming holiday-shortened week. Profit-taking in recent gainers may temper optimism, while bargain hunters could seize opportunities in beaten-down stocks. As investors navigate this dynamic landscape, a cautious but strategic approach remains paramount.
