The Nigerian Exchange witnessed a bullish trend this past week, resulting in investor gains of approximately N295 billion, despite a reduction in trading activities. This positive performance follows two straight weeks of losses, with the All-Share Index’s year-to-date standing at a notable 30.69%. Key stocks like Flour Mills, Oando, and Guaranty Trust Holding Company were instrumental in driving this uptick, with weekly increases of 10.00%, 4.42%, and 2.75% respectively. The rebound was attributed to sector rotation and portfolio rebalancing, spurred by optimism from Q3 earnings reports and the perceived undervaluation of several stocks offering strong growth potential.
The All-Share Index increased by 0.50% to close at 97,722.28 points, while the market capitalization saw a similar 0.50% rise, ending at N59.22 trillion. Despite the positive year-to-date return, the broader market experienced more declines than gains, with 45 stocks losing value compared to 39 gainers.
This trend indicates a cautious approach among investors, driven by prevailing economic uncertainties. The total share turnover for the week was 1.482 billion shares, valued at N38.88 billion across 44,795 transactions, reflecting a decrease compared to the previous week’s 6.468 billion shares worth N75.75 billion in 48,804 deals.
The Financial Services sector led the market in trading volume, with 1.068 billion shares valued at N19.82 billion in 21,001 deals, making up 72.04% of the total volume and 50.98% of the value. The Oil and Gas sector followed with 103.143 million shares worth N11.35 billion, while the Consumer Goods sector recorded 77.198 million shares valued at N2.845 billion. Notable equities like Access Holdings Plc, United Capital Plc, and United Bank for Africa Plc were the most traded, accounting for 433.794 million shares worth N10.27 billion, contributing significantly to the weekly turnover.
Sector-wise, the performance was generally positive, with gains observed in the NGX-Insurance, NGX-Banking, and NGX-Consumer Goods indices, which rose by 2.84%, 2.32%, and 0.60% respectively. Conversely, the NGX-Oil & Gas and NGX-Industrial sectors posted minor losses of 0.29% and 0.20%, driven by price dips in Oando, BUA Cement, and Berger.
Top gainers for the week included John Holt, Eunisell, and Flour Mills, while Daar Communication, Oando, and VFD Group were among the worst performers. Analysts predict ongoing market volatility, with a potential edge for bullish investors, as factors like inflationary pressures and naira volatility continue to shape market sentiments. Additionally, Chapel Hill Denham listed extra units of the Nigeria Infrastructure Debt Fund, increasing its total units from 961.12 million to 961.34 million.
