The Nigerian equities market ended the week ended 13, December, 2024 on a strong bullish note, with the market benchmark index, the NGX All-Share Index advancing by an impressive 1.19 percent week-on-week to close at 99,378.06 points, inching closer to the psychologically significant 100,000-point mark.
Fortunately, the upward trajectory reflects robust buying activity across various sectors, underpinned by improved investor sentiment and favourable market dynamics.
In tandem, the market capitalisation mirrored the ASI’s rise, gaining N707.61 billion or 1.19 percent week-on-week to cross the N60 trillion milestones, settling at N60.24 trillion.
This gain underscores the renewed interest in Nigerian equities as investors actively reposition themselves for year-end opportunities.
Consequently, the year-to-date return of the benchmark index stood at an impressive 32.90 percent, with the market recording 51 gainers against 35 laggards during the week.
Trading activities, however, were subdued as investors engaged in sectoral rotation amidst weak market internals and cautious participation ahead of the anticipated November 2024 Consumer Price Index report.
The total traded volume for the week declined by 30.12 percent to 2.72 billion units, while the total value of transactions dropped significantly by 43.41 percent to N49.66 billion. Additionally, the number of deals edged lower by 1.74 percent, with a total of 43,103 transactions recorded.
This tepid trading mood highlights the cautious approach of market participants, who are weighing their options amid expectations of inflationary pressures and the traditional “Christmas blues.”
Sectoral performance was mixed but predominantly bullish. The NGX Oil & Gas sector emerged as the star performer, posting a robust weekly gain of 7.61 percent, driven by increased demand for energy stocks with stronger fundamentals.
The NGX Insurance sector followed closely, appreciating by 7.52 percent week on week, while the NGX Consumer Goods and NGX Banking indices posted modest weekly gains of 1.01 percent and 0.16 percent, respectively, as investors continued to favour blue-chip stocks.
Conversely, the NGX Industrial Goods sector underperformed, shedding 0.60 percent week on week as mild profit-taking in the sector tempered its recent rally-driven momentum.
At the stock level, Golden Guinea Breweries emerged as the week’s top gainer, soaring by an impressive 60 percent.
Other significant gainers included African Prudential, which advanced by 59 percent, Tantalizer 52 percent, Conoil 34 percent, and Coronation Insurance, which added 25 percent to its value.
On the flip side, NSL Technology led the decliners, losing 23 percent, followed by Austin Laz 15 percent, Haldane McCall 11 percent, Julius Berger 10 percent, and John Holt, which also declined by 10 percent.
Looking forward, market analysts at Cowry Assets Management Limited say the market is well-positioned to sustain its bullish momentum in the new week.
“The ongoing year-end rally, coupled with expectations of strong full-year corporate performance, is likely to support buying activities. Investors are also expected to closely monitor macroeconomic indicators, particularly the release of November 2024 inflation figures, which could shape sentiment and influence portfolio adjustments. Developments in the foreign exchange market will similarly play a critical role as market participants evaluate the impact of economic data on investment decisions,” they stated.
Similarly, market analysts at Cordros Securities said, choppy trading is expected to persist this week but with a bullish undertone. They noted that investors are expected to continue to prioritise fundamentally strong stocks ahead of the New Year.
