The Nigerian equities market extended its bullish run in the just-ended trading week, as renewed investor interest in fundamentally strong stocks pushed key performance indicators higher, reinforcing confidence in the resilience of the domestic bourse despite underlying market fragility.
At the close of trading, the benchmark NGX All-Share Index (ASI) advanced by 1.03 per cent week-on-week to settle at 203,770.42 points, while total market capitalisation rose by 1.05 per cent to N131.17 trillion. The rally translated into a net gain of approximately N1.36 trillion for investors, marking a significant improvement from the N837 billion recorded in the previous week and lifting the year-to-date return to 30.95 per cent.
The sustained upward trajectory reflects continued rotation into high-quality, liquid equities, particularly within the banking and consumer goods segments, as investors position for earnings resilience and value opportunities in a still-evolving macroeconomic environment.
However, beneath the headline gains, market internals painted a more cautious picture. Market breadth closed negative at 0.46x, with 25 gainers against 54 decliners, indicating that the broader market experienced more selling pressure than buying interest.
Trading activity, on the other hand, showed notable improvement, reversing the slowdown recorded in the prior week. Total turnover rose significantly, with investors exchanging 3.36 billion shares valued at N152.13 billion across 230,368 deals. This represents week-on-week increases of 17.67 per cent in volume, 33.73 per cent in value, and 6.62 per cent in the number of deals.
Sectoral performance further highlighted the selective nature of investor sentiment. The banking sector emerged as the clear outperformer, advancing by 5.10 per cent week-on-week. The rally was driven by sustained buying interest in tier-one lenders such as Guaranty Trust Holding Company, Zenith Bank, and FirstHoldCo, reflecting confidence in the sector’s earnings strength, attractive valuations, and ability to navigate prevailing economic headwinds.
The consumer goods sector followed with a 3.73 per cent gain, supported by renewed accumulation in companies such as NASCON Allied Industries and Guinness Nigeria. The uptick signals a cautious return to defensive plays, as investors seek exposure to companies with relatively stable demand profiles.
Similarly, the oil and gas sector posted a 2.67 per cent increase, buoyed by continued interest in energy counters including Seplat Energy and Aradel Holdings. The sector’s performance reflects sustained investor appetite for energy stocks amid supportive global oil price dynamics and supply-side considerations.
In the industrial goods space, gains were more modest, with the sector rising by 0.80 per cent, largely driven by buying interest in Lafarge Africa Plc. The performance points to cautious optimism in infrastructure-linked equities, supported by expectations of ongoing construction activity and public sector spending.
In contrast, the insurance sector stood out as the only laggard, declining by 3.64 per cent during the week. The downturn was driven by heavy sell-offs in Sovereign Trust Insurance and Royal Exchange, reflecting persistent weak sentiment and limited investor confidence in the segment.
A closer look at individual stock performance revealed strong gains among a select group of equities. Trans-Nationwide Express Plc led the gainers’ chart with a 32.7 per cent increase, followed by Nigerian Exchange Group, which rose by 13.9 per cent. Guaranty Trust Holding Company also posted double-digit gains, alongside NASCON Allied Industries and Guinness Nigeria, as buying interest remained concentrated in fundamentally sound names.
On the losers’ side, Daar Communications Plc recorded the steepest decline, shedding 21.5 per cent, followed by RT Briscoe, Deap Capital Management, Ellah Lakes, and Japaul Gold, all of which experienced significant selling pressure amid profit-taking and weak sentiment.
From a trading activity standpoint, the financial services sector dominated the market, accounting for 68.54 per cent of total trading volume and 59.54 per cent of total value. A combined turnover of 2.303 billion shares worth N90.47 billion in 98,175 deals underscores the sector’s central role in driving market liquidity.
Notably, the trio of Access Holdings Plc, Wema Bank Plc, and Guaranty Trust Holding Company accounted for a significant share of market activity, with a combined volume of 1.124 billion shares valued at N49.45 billion. This concentration highlights the dominance of large-cap financial stocks in shaping overall market direction.
The week’s trading was also influenced by a shortened trading calendar, as markets opened on Tuesday following a public holiday declared to mark the Easter celebration. Despite the reduced number of trading sessions, the market recorded gains in four out of the five sessions, demonstrating underlying strength in investor sentiment.
Daily performance reflected a mix of gains and mild corrections. After opening the week on a slightly negative note, the market rebounded strongly midweek, posting gains of N390 billion on Wednesday and N55 billion on Thursday, before closing marginally lower on Friday with a loss of N3 billion.
Looking ahead, analysts maintain a cautiously optimistic outlook for the market. According to Cowry Research, the positive momentum is expected to persist in the near term, supported by sustained demand for fundamentally strong and highly liquid stocks. However, the firm cautioned that the negative market breadth points to underlying vulnerabilities.
“Improved trading activity and rising investor participation may continue to underpin market performance. However, the negative breadth suggests that profit-taking and sell-offs across a broader range of stocks could limit further upside,” the analysts noted.
They added that investors are likely to remain selective, focusing on value-driven opportunities and earnings-backed plays, while keeping a close watch on macroeconomic indicators, liquidity conditions, and policy developments for clearer market direction.
