The Nigerian stock market closed on a positive note last week, with banking and consumer goods stocks driving gains as investors returned to fundamentally strong equities amid renewed bargain hunting.
Market data showed that the Nigerian Exchange Limited (NGX) market capitalisation rose by N613 billion week-on-week to close at N157.057 trillion, up from N156.444 trillion recorded in the previous week.
Similarly, the NGX All-Share Index (ASI) appreciated by 0.14 per cent to settle at 243,462.13 points, reflecting sustained investor confidence despite intermittent profit-taking.
Analysts attributed the upbeat performance to renewed interest in banking, consumer goods and other blue-chip stocks following recent price corrections, with institutional investors taking advantage of lower entry prices in fundamentally sound companies.
The financial services sector dominated trading activity, accounting for 2.006 billion shares valued at N99.697 billion exchanged in 96,171 deals.
The sector contributed 71.17 per cent and 54.63 per cent to the total equity turnover volume and value, respectively.
The consumer goods industry followed with 178.863 million shares worth N7.872 billion traded in 26,637 deals, while the oil and gas sector recorded transactions involving 151.237 million shares valued at N38.309 billion across 16,879 deals.
Further analysis showed that trading in First Holdco Plc, FCMB Group Plc and Access Holdings Plc accounted for 939.402 million shares worth N57.673 billion in 19,051 deals, representing 33.33 per cent of total market volume and 31.60 per cent of total value traded during the week.
Market analysts noted that investors continued to position ahead of the release of second-quarter and half-year corporate earnings, particularly in the banking sector, where expectations remain positive following resilient first-quarter results and improving macroeconomic conditions.
According to analysts at InvestData Consulting Limited, investors are likely to remain selective despite the market’s positive outlook.
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“Despite the positive outlook, investors are expected to remain cautious around stocks that have recorded substantial gains since the beginning of the year, as profit-taking could periodically interrupt the rally,” the firm stated.
The analysts added that market direction in the coming weeks would largely depend on the release of second-quarter corporate earnings, developments in the global oil market, movements in fixed-income yields and expectations surrounding monetary policy.
They also noted that investors would continue to monitor foreign portfolio inflows, exchange rate stability and inflation trends for indications on the sustainability of the ongoing market rally.
“Should earnings meet or exceed market expectations, the NGX could extend its upward momentum as institutional investors continue rotating into fundamentally strong sectors,” the analysts said.
The latest performance comes after the market rebounded strongly in the preceding week, when investors gained N9.342 trillion in market value.
