Equities Investors Gain N1.81trn in 4-Day Monster Rally
The Nigerian equities market grew by N181 trillion in four days due to a monster rally that has persisted ahead of the second quarter economic report. Hence, the Nigerian Exchange (NGX) all-share index climbed by 2.57% to close at 114,616.75 points ahead of the Sallah holiday.
Stockbrokers reported that gains were recorded in all four trading sessions, underpinned by renewed investor interest in financial services, energy, telecoms, and FMCG stocks. The rally was largely driven by portfolio rebalancing activities at the onset of the new trading month, alongside tailwinds from earnings season and the recent purchasing manager index report.
According to Cowry Asset Management Limited, equities market internals remained healthy, with 53 stocks advancing against 43 decliners, resulting in a positive market breadth of 1.23x.
Market details revealed that the year-to-date (YTD) return for the benchmark index strengthened to 11.36%; stockbrokers said investors continued to build exposure to sectors poised to benefit from both cyclical and structural tailwinds.
Despite the bullish sentiment, trading activity moderated during the week. Total deals declined by 28.7% week-on-week to 63,763 transactions, as investors took a more calculated approach amid profit-taking and holiday-shortened trading.
Similarly, total traded volume fell by 15.6% to 3.19 billion units, while the total value of trades declined by 37.2% to N74.88 billion.
“These figures suggest a rally driven more by selective accumulation than broad-based high-volume buying, a trend typical of the early stages of sectoral repositioning”, Cowry Asset Limited told investors in a note.
All major sector indices closed in positive territory, reaffirming broad-based investor appetite. The NGX Banking Index led the rally with a 4.69% gain, buoyed by strong performances in ACCESSCORP, WEMABANK, GTCO, and FIRSTHOLDCO.
The Insurance Index rose 3.36%, lifted by LASACO, WAPIC, GUINEA INSURANCE, and CORNERSTONE. The Oil & Gas Index was not left behind, advancing by 3.33% on the back of sharp upticks in OANDO and JAPAULGOLD.
Elsewhere, the Consumer Goods Index gained 2.33% week-on-week, driven by price gains in MAYBAKER, FIDSON, INTERNATIONAL BREWERIES, and GUINNESS.
The Industrial Goods Index also edged higher by 1.18%, thanks to renewed interest in DANGOTE CEMENT, BERGER PAINTS, and LAFARGE AFRICA. Meanwhile, the NGX Commodities Index posted a 0.72% weekly gain, led by stocks such as MULTIVERSE and ARADEL.
Top-performing equities for the week were OANDO (+25.8%), LASACO (+21.6%), MULTIVERSE (+20.4%), CORNERSTONE (+19.5%), and FIRSTHOLDCO (+17.6%), reflecting a mix of recovery plays and speculative momentum.
On the laggard’s table, ABCTRANS declined the most, shedding 18.6%, followed by JULIUS BERGER (-13.5%), LEGEND INTERNET (-13.3%), LIVESTOCK (-12.2%), and ETRANZACT (-11.8%), as profit taking set in across selected counters.
“Looking ahead, we expect the prevailing trend to persist in the near term as investors continue to realign their portfolios in anticipation of further earnings releases and macroeconomic data, particularly Nigeria’s Q1 2025 GDP numbers”, Cowry Asset Limited said.
Stockbrokers stated that the sustained momentum in the market is likely to be driven by a combination of sectoral rotation strategies and positive sentiment surrounding the resilience of the domestic economy. However, trading may remain moderate as some players adopt a cautious stance ahead of fresh catalysts.
