BY FESTUS OKOROMADU
The Nigerian stock market achieved unprecedented highs last week, surmounting multiple historical thresholds.
As a result, the market benchmark index, the NGX-All Share Index recorded a commendable 1.18 percent week-on-week increase, despite reporting a negative trend on Friday, thus, marking a notable display of resilience in the face of comparatively low traded volumes and a rather stagnant market breadth.
The positive momentum posted in the first four trading sessions of the week propelled the All-Share Index above the psychologically significant 72,000 mark, culminating in a closing figure of 72,389.23 points.
This noteworthy ascent was underpinned by robust rallies observed across key sectors, namely banking, consumer goods, telecoms, energy, and industrials.
The bullish trajectory was observed amid a nuanced market sentiment, where certain stocks marked new 52-week highs, coinciding with the prevailing discourse around anticipated recapitalization within the banking sector and the broader economic headwinds.
In line with the impressive index performance, the market capitalization exhibited a northward trajectory, recording a 1.18 percent week-on-week increase to reach N39.61 trillion.
Consequently, equity investors capitalized on gains totaling N464 billion over four out of the five trading sessions, setting the stage for the anticipated end of year rally as market participants gear up for the festive season.
Remarkable advancements were witnessed in the Banking, Consumer Goods, and Industrial indexes, registering appreciations of 7.01 percent, 0.22 percent, and 0.24 percent, respectively.
These upward movements were attributed to a surge in buying interest observed in select counters such as INFINITY, STERLINGNG, CADBURY, ACCESSCORP, ETI, and TANTALIZER, contributing to positive price movements.
On the flip side, the Insurance and Oil & Gas indexes faced minor setbacks of 0.96 percent and 0.27 percent, respectively, driven by notable price decreases in ETERNA, NEM, SUNO SASUR, and CONOIL.
Despite the market’s overall positive performance, trading activity during the week exhibited a degree of lethargy, marked by a 22.32 percent decrease in total traded volume, which settled at 1.88 billion units.
The number of trades mirrored this sentiment, declining by 4.85 percent to 33,020 deals, while the weekly traded value experienced a notable downturn of 29.82 percent week-on-week, closing at N31.63 billion.
Specifically, trading in the top three equities namely Access Holdings Plc, Guaranty Trust Holdings Company Plc and Zenith Bank Plc (measured by volume) accounted for 491.533 million shares worth N15.466 billion in 5,997 deals, contributing 26.12 percent and 48.90 percent to the total equity turnover volume and value respectively.
Highlight of the top gaining stocks for the week shows that INFINITY, SCOA, STERLINGNG, CADBURY, and ACCESSCORP, each secured impressive gains of 59 percent, 29 percent, 10 percent, 10 percent, and 10 percent, respectively, compared to their previous week’s close. Conversely, stocks such as ETERNA (12 percent), THOMAS WY (11 percent), NEM (9 percent), and MECURE (8 percent) faced declines in their share prices on a week-on-week basis.
Fifty-three equities appreciated in price during the week higher than 49 equities in the previous week.
Thirty-two equities depreciated in price lower than 33 in the previous week, while 70 equities remained unchanged, lower than 73 recorded in the previous week.
Meanwhile, market players are expected to digest the recently published Consumer Price Inflation report and its potential impact on the financial market, amidst sector rotation and portfolio rebalancing spurred by the high expectation for full-year corporate numbers and high yields.
