The Nigerian stock market has sustained its positive momentum on Week-on-Week, WoW, as renewed buying interest in blue-chip stocks outweighed widespread profit-taking across the broader market. The benchmark, Nigerian Exchange (NGX) All-Share Index, ASI, closed marginally higher by 0.1% at 245,573.60 points from 245,283.68 the previous week, arising from sustained institutional demand in fundamentally strong banking, consumer goods and energy stocks, even as many medium and small-cap stocks came under selling pressure.
The week’s performance highlighted the resilience of the market despite cautious investor sentiments, while profit-taking remained evident across several sectors following the strong rally recorded in recent months. Another major performance indicator, NGX market capitalisation surged by N187 billion to close at N158.513 trillion from N158.326 trillion the previous week. Meanwhile, analysis of trading last week showed that a total turnover of 5.359 billion shares worth N139.053 billion in 261,869 deals was traded by investors on the floor of the Exchange, in contrast to a total of 5.119 billion shares valued at N404.762 billion that exchanged hands penultimate week in 285,223 deals.
The Financial Services Industry (measured by volume) led the activity chart with 3.469 billion shares valued at N73.013 billion traded in 117,509 deals: thus contributing 64.73% and 52.51% to the total equity turnover volume and value respectively.
The Oil & Gas Industry followed with 1.023 billion shares worth N18.900 billion in 17,680 deals. Third place was the ICT Industry, with a turnover of 232.368 million shares worth N14.624 billion in 31,866 deals. Trading in the top three equities, namely Japaul Gold & Ventures Plc, Fortis Global Insurance Plc and FCMB Group Plc (measured by volume), accounted for 2.562 billion shares worth N14.173 billion in 6,645 deals, contributing 47.80% and 10.19% to the total equity turnover volume and value respectively.
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Commenting on market performance and outlook, analysts at InvestData Consulting Limited, stated: “Investor attention remained focused on the ongoing corporate earnings season, with market participants positioning ahead of additional half-year financial results and possible interim dividend declarations. “This selective accumulation by institutional investors continues to underpin the market, particularly within the banking sector where expectations of stronger profitability remain high despite prevailing macroeconomic challenges.
“The energy sector also attracted renewed buying interest following the rebound in international crude oil prices, while selected consumer goods stocks gained on expectations of improved earnings performance.
“This combination of sector rotation and value hunting continued to define market direction, as investors balanced profit-taking with fresh investments in fundamentally attractive counters.”
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