The Nigerian Exchange Limited (NGX) concluded last week on a positive note, driven by strong bargain-hunting activity that helped offset mixed trading earlier in the week. The All-Share Index (ASI) rose by 0.5% week-on-week (WoW), closing at 97,722.28 points, compared to 97,236.19 points in the previous week. Market capitalization also surged by ₦295 billion, reaching ₦59.225 trillion by Friday.
This growth was largely fueled by better-than-expected third-quarter earnings from key companies across various subsectors. Stocks such as UBA, GTCO, Flour Mills, and WAPCO recorded notable gains of 7.9%, 4.5%, 22.9%, and 9.4%, respectively, underpinning the market’s performance. As a result, Month-to-Date (MtD) and Year-to-Date (YtD) returns settled at 0.1% and 30.7%, respectively.
However, overall trading activity remained subdued, with total trading volume and value declining by 77.1% and 48.4% WoW. Sectoral indices presented a mixed performance: the Banking and Insurance indices each gained 2.8%, while the Consumer Goods Index rose by 0.6%. On the downside, the Oil & Gas and Industrial Goods indices fell by 0.3% and 0.2%, respectively.
Market analysts predict cautious trading in the coming week, citing a lack of strong positive catalysts. Cordros Research highlighted that medium-term investor sentiment will likely hinge on macroeconomic developments and fixed-income market trends. Similarly, InvestData Consulting anticipates a continuation of mixed market activity, with a focus on bargain-hunting, profit-taking, and low valuations as the year-end approaches.
As investors monitor economic indicators such as the Consumer Price Index (CPI) and engage in sector rotation and portfolio rebalancing, the NGX remains poised for potential volatility, offering opportunities for those looking to capitalize on pullbacks and corrections.
