The Nigerian capital market last week continued its bullish trend with the benchmark index rising by 1.73 percent week-on-week to close at 99,300.38 points, nearing the significant 100,000 mark.
This upward movement was driven by high trade volumes, positive market internals, and strong buying sentiments, particularly in blue-chip companies within the mid and medium-cap categories.
As a result, the benchmark index experienced gains throughout the week, ending May with a 1.09 percent increase and achieving a year-to-date gain of 32.80 percent.
Similarly, the market capitalization of listed equities increased by 1.73 percent over the week, rising from N55.22 trillion to N56.17 trillion.
This growth translated into a N954.9 billion profit for equity investors, indicating a robust bull trend that supports the market’s recovery as it approaches the end of the first half of the year.
Investors’ strong buying interests and positive price moments prompted gains in share prices of stocks such as FIDELITY, BERGER PAINTS, DANGSUGAR, NASCON, and FCMB appreciating by 23 percent, 21 percent, 21 percent 20 percent and 18 percent respectively to top the gainers chat for the week.
On the other hand, negative sentiments from investors led to the sell down on the share of UHOMREIT, UNILEVER, CILEASING, NPFMCRFBK, and FTN COCOA depleting in price by 59 percent, 46 percent 14 percent, 11 percent and 8 percent top the losers chat and as well adjust their portfolios in anticipation of the new trading month.
Across the sectoral gauges, performance was predominantly bullish, except for the Industrial Goods sector, which experienced a slight loss of 0.13 percent due to declines in UHOMREIT, CILEASING, and WAPCO.
The NGX Oil & Gas index saw a notable increase of 9.08 percent, driven by gains in SEPLAT, OANDO, ETERNA, and CONOIL, especially following the SEPLAT and ExxonMobil asset purchase deal announced by the NNPC over the week. The NGX Banking Sector rose by 8.72 percent, spurred by increased investor interest in FIDELITY, FCMB, UBA, and FBNH.
The NGX Insurance sector gained 3.88 percent, bolstered by CHIPLC, INTENEGINS, MANSARD, and NEM, thanks to strong FY-23 financial results and attractive dividend payouts.
The Consumer Goods Sector also advanced by 2.04 percent, with contributions from DANGSUGAR, NASCON, NB, and TRANSCORP.
Meanwhile, the level of trading activities in the week was robust with positive market breadth evidenced in total activities that produced 45 advancers as against the 27 decliners. Thus, the total traded volume inched further by 10.24 percent week on week to 2.19 billion units while the total weekly traded value cleared lower by 23.12 percent week on week to N31.30 billion. However, the total deals traded for the week increased by 2.27 percent week on week to 39,362 trades for the week.
Global markets
Meanwhile, sentiments remained bearish across global equities as a batch of disappointing economic data across the US, Europe and Asia weighed on sentiments, diminishing hopes of interest rate cuts by major central banks.
Furthermore, investors’ attention shifted to the US personal consumption expenditures index (PCE) report due later today (31 May), for clues on interest rate outlook.
In line with this, US equities (DJIA: -2.5%; S&P 500: -1.3%) were headed for a second consecutive week of losses as rising Treasury yields and a weaker-than-expected revised Q1-24 GDP data (+1.3% | previously: +1.6%) weighed on sentiments. Likewise, European equities (STOXX Europe: -0.7%; FTSE 100: -0.7%) were on track to close lower as higher-than-expected inflation data in the Eurozone fueled concerns about prolonged high interest rates.
Asian markets remained bearish (Nikkei 225: -0.4%; SSE: -0.1%) following (1) negative sentiments on Wall Street, (2) worries over the recent rise in long-term interest rates in Japan, and (3) weak Chinese manufacturing PMI data indicating a patchy economic recovery.
The Emerging Markets index (MSCI EM: -2.3%) closed lower led by losses in China (-0.1%) and India (-1.9%).
Similarly, the Frontier (MSCI FM: -0.5%) market index reversed last week’s gain due to bearish sentiments in Romania (-0.6%).
