The Nigerian equities market extended its record-breaking rally last week, with investors gaining more than N3.3 trillion despite late-session profit-taking that interrupted an otherwise bullish run on the Nigerian Exchange (NGX).
The benchmark NGX All-Share Index (ASI) advanced by 2.27 percent week-on-week to close at 250,330.92 points, up from 244,775.83 points recorded in the previous week. Market capitalisation also climbed to N160.44 trillion from N157 trillion, reflecting renewed appetite for equities amid sustained momentum in banking, industrial and consumer stocks.
The market opened strongly on Monday, May 11, with investors recording gains of over N3.2 trillion at the close of trading. Buying pressure persisted on Tuesday as the market added another N1.2 trillion within five hours of trading, while Wednesday’s session extended the bullish streak with an additional N440 billion gain.
However, the rally moderated in the final two sessions of the week as investors moved to lock in profits after weeks of sustained appreciation. The market shed N383 billion on Thursday and lost another N1.2 trillion on Friday, trimming part of the week’s earlier gains.
Despite the pullback, year-to-date returns strengthened further to 60.87 percent, underscoring continued investor confidence in the domestic bourse amid limited fixed-income attractiveness and improving corporate earnings expectations.
Market breadth remained firmly positive, with 74 equities posting gains against 24 decliners, while 48 stocks closed unchanged. Analysts said the breadth of the rally reflected selective but resilient buying interest across key sectors of the market.
Trading activity also remained robust during the week. Investors exchanged 7.772 billion shares valued at N374.04 billion in 402,945 deals, compared with 7.075 billion shares worth N324.35 billion traded in 474,436 deals the previous week. Although the number of deals declined, both volume and value traded increased significantly, pointing to stronger institutional participation and larger ticket transactions.
The Financial Services Industry dominated trading activity, accounting for 61.43 percent of total volume and 52.49 percent of total value traded. The sector recorded 4.774 billion shares worth N196.35 billion exchanged in 153,515 deals.
The ICT sector followed with 1.118 billion shares valued at N57.83 billion, while the Services Industry recorded 601.75 million shares worth N6.98 billion.
Trading activity was heavily concentrated in a few bellwether stocks. FirstHoldCo Plc, United Bank for Africa Plc and Chams Holding Company Plc jointly accounted for 2.195 billion shares valued at N99.82 billion, representing 28.24 percent of total traded volume and 26.69 percent of total market value.
Sectoral performance was largely positive during the week, led by the Industrial Goods Index, which rose by 4.66 percent. The Banking, Insurance and Consumer Goods indices also posted gains of 2.82 percent, 2.74 percent and 1.65 percent respectively. In contrast, Oil & Gas and Commodity stocks remained under pressure, declining by 1.19 percent and 0.80 percent.
Among top performers, Berger Paints recorded the strongest rally, gaining as much as 55.57 percent during the week amid heightened investor demand. SCOA Plc appreciated by 45.92 percent, while Daar Communications advanced 42.41 percent. Other notable gainers included UPDC REIT and Abbey Mortgage Bank.
On the losers’ chart, Zichis led the laggards with an 11.78 percent decline, followed by TIP Plc, which fell 10.03 percent, while NPF Microfinance Bank shed 10 percent. Analysts attributed the declines largely to profit-taking and sustained sell pressure after recent rallies.
Analysts at Cowry Asset Management expect the equities market to remain positive in the near term, although volatility could increase as investors continue to rebalance portfolios and react to macroeconomic developments.
Selective buying interest is expected to remain concentrated in fundamentally strong sectors such as banking, industrial goods and consumer stocks, while oil and gas counters may continue to face pressure from weaker sentiment and cautious positioning.
