Equities Investors Gain N1.06T as Financial Stocks Rally
The equities market capitalisation of the Nigerian Exchange, NGX, grew by N10.6 trillion as insurance, banking, and consumer goods indices drove rallies that lasted for four out of five days. The local bourse extended its winning streak in the just-concluded week, achieving a historic milestone as the benchmark NGX All-Share Index (ASI).
The market index surpassed the psychological 100,000-point threshold for the first time since July 2024, Cowry Asset Limited told investors in an update. The Nigerian Exchange All-Share index surged by 1.76% week on week to close at 101,129.09 points due to investors’ renewed confidence across multiple sectors.
Cowry Asset Limited told investors that the rally was buoyed by favourable market dynamics, including festive season optimism and Christmas-related ctivities. The equities market uptrend underscores strong investor appetite for Nigerian equities, spurred by year-end window dressing and a positive macroeconomic outlook, stockbrokers said.
The year-to-date return advanced to 35.25%, cementing its status as the best-performing index of 2024. Despite the bullish sentiment, trading activities showed mixed patterns as investors carefully reassessed their portfolios, factoring in the implications of November 2024 inflation data.
The total volume of shares traded for the week declined by 10.32% to 2.44 billion units, while the value of transactions rose significantly by 78.84% to N88.81 billion, executed across 48,216 deals.
Stock market analysts at Cowry Asset Limited explained that these figures reflect cautious trading amidst strategic positioning by market participants preparing for potential macroeconomic shifts.
Data from the local bourse showed that sectoral performance remained predominantly positive, with a robust market breadth as 61 stocks recorded gains against 26 decliners. The insurance and banking indices emerged as the week’s top-performing sectors, posting solid gains of 8.83% and 3.23%, respectively, as financial stocks drew heightened investor interest.
The consumer goods and oil & gas sectors also performed commendably, rising by 2.92% and 0.99% week on week, respectively, driven by a surge in demand for energy and consumer stocks with strong fundamentals, particularly blue-chip counters.
However, the industrial goods sector declined by 0.83%, reflecting profit-taking activities that slightly tempered its performance.
MRS Oil Plc emerged as the top gainer for the week, soaring by 36.4%. The oil stock was closely followed by Eterna Oil (+32.4%), Honeywell Flour (+31.5%), Livestock Feeds (+30.2%), and Coronation Insurance (+26.9%), as investors capitalised on their growth prospects.
Conversely, John Holt Plc led the decliners, dropping 18.7%, followed by Multiverse Exploration (-18.6%), University Press (-16.3%), Tantaliser (-13.0%), and PZ Cussons (-8.0%), driven by profit booking pressures in these counters. Investment Company Cowry Asset Limited expects the Nigerian equities market to maintain its bullish momentum, supported by year-end window-dressing activities by fund managers.
Stockbrokers said equities market participants will also closely monitor the impact of the recently published Consumer Price Index (CPI) data on their portfolios and market strategies. “Optimism surrounding improved macroeconomic indicators and ongoing portfolio rebalancing efforts is likely to sustain market activity.
“As the year draws to a close, strategic positioning is anticipated to guide trading decisions, promising an eventful conclusion to a record-breaking year for the local market,” Cowry Asset Limited told investors in its update. Overall, the equities market capitalisation of the Nigerian Exchange rose by N1.06 trillion to close at N61.3 trillion. Goldman Sachs, IFC Partner African Banks to Empower Women Entrepreneurs
