The Nigerian Exchange Limited (NGX) experienced a consistent bullish trend last week, propelling investors to gain an impressive N2.1 trillion.
Despite encountering mixed sentiment, the market showcased significant gains that overshadowed losses, leading to a surge in the NGX market capitalization to N59.416 trillion by the close of trading on Friday, marking a notable increase from N57.293 trillion the previous week.
Simultaneously, the NGX All Share Index (ASI), a pivotal gauge of stock market performance, observed a noteworthy uptick of 3.7%, climbing to 101,085.25 points from 101,330.85 points.
An in-depth analysis of last week’s transactions unveiled a total turnover of 1.773 billion shares valued at N52.867 billion, traded in 44,713 deals. This contrasted with the previous week’s statistics, which recorded 2.157 billion shares valued at N108.824 billion, exchanged in 51,556 deals.
The Financial Services Industry emerged as the frontrunner in terms of volume, with 1.136 billion shares valued at N23.185 billion, transacted in 19,896 deals. This segment accounted for 64.04% and 43.86% of the total equity turnover volume and value, respectively.
Following closely was the Conglomerates Industry, witnessing the exchange of 339.390 million shares worth N5.874 billion in 3,650 deals. The Consumer Goods Industry secured the third position with a turnover of 82.645 million shares valued at N6.724 billion, traded in 6,155 deals.
The top three equities, namely Transnational Corporation Plc, Guaranty Trust Holding Company Plc, and Access Holdings Plc, collectively traded 677.439 million shares worth N17.287 billion in 7,789 deals. This contributed 38.21% and 32.70% to the total equity turnover volume and value, respectively.
In response to the market’s performance, analysts at Investdata Consulting expressed expectations of sustained mixed sentiments as investors and traders grapple with the latest inflation rate surpassing 30% and developments in the fixed-income market. Additionally, they anticipate an influx of corporate earnings with dividends entering the market, motivating investors to leverage low valuations for portfolio positioning and rebalancing.
The analysts emphasized the presence of volatility and pullbacks, which bolster the market’s upside potential. Hence, they advised investors to capitalize on price corrections while diligently monitoring global and domestic trends and events.
