Equities Investors’ Portfolio Value Rises by N512bn as Heavyweights Rally
As bargain hunting heated up, equities investors’ portfolio value rose by more than N512 billion in Nigerian market, driven by price appreciation in heavyweights stocks and mid-cap companies with upsides.
Despite a shortened trading week, the Nigerian stock market closed the week on positive note with a surge in key performance indicators.
Data from the Nigerian Exchange (NGX) showed that All-Share Index gained 0.71% week-on-week to close at a record high of 115,429.54 points, stockbroking firms reported, citing data from the local bourse.
The local bourse climbed, supported by bullish sentiment and investors’ continued preference for risk assets in anticipation of macroeconomic tailwind.
The market capitalisation of listed equities advanced in tandem, rising by N512.52 billion to settle at N72.79 trillion, according to stockbrokers.
The monster rally seen raised year-to-date return to 12.15%, reaffirming the market’s resilience and attractiveness relative to money market and fixed income alternatives, Cowry Asset Limited said.
Stock analysts said a positive market breadth of 1.41x, supported by 55 gainers against 39 losers, suggests that investors were broadly constructive, with demand concentrated in select sectors and counters offering strong fundamentals or recent corporate catalysts.
Trading activity was, however, muted, according to details of transactions conducted over three days session last week.
The volume and value of shares traded declined by 35.77% and 32.31% respectively compared to the prior week, closing at 2.05 billion units valued at N50.68 billion.
Despite the dip in liquidity, the number of deals executed inched higher by 1.47% to 64,702 transactions, implying increased participation in small-to-mid cap stocks as investors sought tactical positions ahead of key economic data.
Sectoral performance was mixed, indicating portfolio realignment and profit-taking in recent outperformers. The oil and gas sector recorded a weekly decline of 1.22%, pressured by selloffs in CONOIL and ARADEL as investors rotated away from energy stocks that had experienced prior gains.
Similarly, the insurance index fell slightly by 0.11% due to weakness in WAPIC and CORNERSTONE, while the commodity index lost 1.41% as activity slowed in the agricultural space.
On the flip side, the consumer goods and industrial goods sectors posted positive returns, buoyed by renewed interest in stocks such as BERGER Paints, ELLAHLAKES, MAYBAKER, HONEYFLOUR, and DANGOTE SUGAR.
Notably, BUACEMENT’s strength provided critical support to the industrial index, reinforcing investor conviction in blue-chip names with consistent earnings and strong market positioning.
Meanwhile, the banking sector closed the week flattish. Losses in tier-1 counters including ETI, ACCESSCORP, ZENITH Bank, and FBNH muted the impact of gains in some tier-2 banks, reflecting a cautious stance ahead of the inflation release and monetary policy recalibration.
In terms of stock performance, Legend Internet led the gainers’ chart with a weekly price appreciation of 32.8%, followed closely by BERGER Paints and ELLAHLAKES, which gained 30.7% and 27.4% respectively.
OANDO and Fidson Healthcare also recorded double-digit gains, driven by strong investor sentiment and speculative positioning.
On the laggard’s side, John Holt, IMG, RT Briscoe, NNFM, and CONOIL posted significant declines as investors rebalanced their holdings and booked profits in previously bullish counters.
“We expect the market to maintain a mildly bullish tone in the coming week. Investor focus will be trained on the May 2025 inflation figures, which are anticipated to show a deceleration”, Cowry Asset Limited said in a note.
The investment firm said a positive inflation surprise could strengthen investor appetite for equities while rendering fixed income assets less attractive in the near term.
Nevertheless, Cowry Asset Limited anticipates intermittent profit-taking as investors reassess risk-reward dynamics following recent price rallies.
“Given current valuations and relative macro stability, we maintain our recommendation for investors to continue to accumulate fundamentally strong stocks with a proven track record of earnings performance and dividend consistency”, the investment firm said.#Equities Investors’ Portfolio Value Rises by N512bn as Heavyweights Rally#
