The Nigerian Exchange Limited witnessed a surge in positive sentiment as the ‘Santa Claus Rally’ continued to cast its festive glow on the market. Airtel Africa Plc and MTN Nigeria Plc emerged as notable beneficiaries, recording a significant gain of 3.31% during the week’s trading.
Investors in these telecom giants reaped the rewards of this buoyant market sentiment, with a collective gain of approximately N394 billion at the close of trading on December 23rd. The robust performance of these companies underscores the resilience of the telecom segment amidst economic volatility.
Airtel Africa closed its last trading day on December 22nd at N1,887.60 per share, boasting a market capitalization of N7.053 trillion on the Nigerian Stock Exchange (NGX). This marked a notable increase from the previous week’s figures of N1800 per share and N6.764 trillion in market capitalization. Airtel Africa registered a week-to-date gain of N289 billion, representing a 4.27% surge.
Similarly, MTN Nigeria witnessed an upward trajectory, with shares closing at N250 per share and a market capitalization of N5.248 trillion after the week’s trading. This reflected an improvement from the preceding week’s numbers of N245 per share and N5.143 trillion in market capitalization, resulting in a gain of N105 billion or 2.04%.
**Santa Claus Rally Impact:**
Market analysts attribute these remarkable gains to the Santa Claus Rally, also known as the December effect. This phenomenon describes the occurrence of more frequent than average stock market gains as the year approaches its end. The sustained increase in the stock market, particularly in the week leading up to December 25th, has become a notable trend observed by investors and analysts alike.
As positive momentum continues to shape the market landscape, the Santa Claus Rally appears to have played a pivotal role in fostering optimism and driving the impressive gains witnessed by Airtel Africa and MTN Nigeria. Investors will be keenly watching how this positive trend unfolds in the remaining days of the year, anticipating further opportunities in the ever-dynamic Nigerian stock market.