The Nigerian equities market continued on a positive momentum, with investors pocketing a ₦2.16 trillion gain in the just-concluded week, despite the negative sentiment that was printed on banking stocks.
Market capitalisation, the total value of stocks listed on the Nigerian Exchange Limited (NGX), rose by 2.37 per cent week-on-week to close at ₦93.30 trillion on Friday, October 10, after opening the week on Monday, October 6, at ₦91.135 trillion.
The ₦2.16 trillion gain reflects overall investors’ sentiment, which remained bullish despite a moderation in transaction value and trading volume.
Transaction value dropped to ₦90.28 billion from ₦115.50 billion, and trading volume declined to 2.286 billion from 8.403 billion.
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However, trading deals rose to 138,177 compared to 115,800 deals that exchanged hands the previous week, reflecting stronger participation from retail and mid-tier investors.
Consequently, the All-Share Index (ASI) advanced by 2.37 per cent to close at 146,988.04 points after hitting a new 52-week high of 147,107 points on strong market internals, driven by renewed investor interest in fundamentally strong stocks.
The market’s resilience is further reflected in a stronger year-to-date return of 42.81 per cent for the ASI, underscoring sustained bullish sentiment amid intermittent profit-taking.
Analysts say evidence of portfolio rebalancing and selective positioning highlighted continued investor confidence in market fundamentals.
The market breadth remained positive as 51 companies’ stocks gained against 41 that lost, indicating cautious optimism.
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Sectoral performance was broadly positive, as five of the six major indices closed higher.
The industrial goods index led with a 4.23 per cent gain to close at 5,292.32 points, followed by insurance with a 3.69 per cent gain to close at 1,257.46 points.
Also, the oil and gas index rose by 2.9 per cent to 2,660.22 points, and the commodities index by 1.65 per cent to 1,153.06 points.
While the consumer goods also advanced by 0.83 per cent to 3,429.45 points, the banking index was the only one that declined by 0.41 per cent to close at 1,520.43 points.
This is because the banking stock is one of the notable financial services industries that drives activity in the Nigerian equities market weekly.
Analysts blamed this on profit-taking and weak sentiment in select banks’ stocks.
According to a report from the NGX, the financial services industry, measured by volume, led the activity chart with 1.355 billion shares valued at ₦24.588 billion traded in 59,553 deals.
It contributed 59.28 per cent and 27.23 per cent to the total equity turnover volume and value, respectively, in the just-concluded week.
Sovereign Trust Insurance stock topped the gainers’ chart, appreciating by 16.7 per cent to ₦3.21 per share.
Conversely, LivingTrust Mortgage Bank led the losers’ table, falling 14.6 per cent to close at ₦5.20 per share.
“Looking ahead into the coming week, we expect the equities market to trade in a mixed but broadly stable pattern in the near term.
“While improved corporate earnings and selective bargain hunting may continue to support prices, cautious investor sentiment amid high interest rates, inflationary pressures, and portfolio rebalancing could limit further upside,” analysts at Cowry Asset Management stated.
Overall, market performance will likely hinge on macroeconomic developments and policy signals from monetary authorities.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
