The Nigerian equities market concluded the week on a high note, driven by renewed buying interest in select stocks. This resulted in a substantial increase of N1.50 trillion in market capitalisation, reaching a total of N163.66 trillion. The benchmark NGX All-Share Index (ASI) also experienced a notable rise of 0.92 per cent week-on-week, closing at 252,113.41 points. This pushed the market's year-to-date (YTD) return to an impressive 62.01 per cent.
The positive market performance was primarily driven by increased buying interest in prominent stocks such as Seplat Energy, Dangote Cement, Zenith Bank, and Guaranty Trust Holding Company (GTCO). However, despite this overall growth, market breadth remained negative for the week. A total of 60 stocks gained value, while 71 stocks experienced losses, indicating a mixed sentiment among investors.
Critical Minerals Financing Corp (CMFC) emerged as the top gainer, with its stock price increasing by 59.80 per cent to close at N3.26 per share. Thomas Wyatt Nigeria and UPDC also recorded significant gains, with their stock prices rising by 28.26 per cent and 24.19 per cent, respectively. Conversely, Haldane McCall led the losers, with its stock price declining by 16.67 per cent to close at N3.00 per share.
The decliners' table also included Champion Breweries, which experienced an 11.87 per cent loss to close at N9.65, and TotalEnergies Marketing Nigeria, which shed 10.00 per cent to close at N518.40 per share. Meanwhile, trading activity saw a notable increase in volume, with investors exchanging 4.689 billion shares worth N240.824 billion in 261,198 deals during the week.
In comparison, the previous week saw 3.249 billion shares valued at N237.986 billion traded in 287,919 deals. Looking ahead, Cowry Asset Management Limited expects the equities market to remain cautiously positive, driven by sustained demand for fundamentally strong stocks and continued interest in the banking and oil and gas sectors.
However, the investment firm noted that the negative market breadth and mixed trading activity may encourage investors to remain selective in the near term. Market sentiment is likely to be influenced by corporate earnings, macroeconomic developments, and sector-specific catalysts. Additionally, profit-taking could moderate further gains following the market's strong year-to-date performance.
Overall, the Nigerian equities market demonstrated resilience and growth, driven by investor interest in select stocks. As the market continues to evolve, investors are advised to remain cautious and selective in their investment decisions, taking into account various market dynamics and indicators.
Key points
- The Nigerian equities market's market capitalisation rose to N163.66 trillion.
- The benchmark NGX All-Share Index (ASI) increased by 0.92 per cent week-on-week.
- Market breadth remained negative, with 60 gainers and 71 losers.
