The Nigerian Exchange Limited (NGX) witnessed a remarkable surge last week, propelled by a combination of robust corporate earnings for the year 2023 and the listing of Transcorp Power Plc. The market added N3.26 trillion in value, marking a significant uptrend in performance.
The All-Share Index (ASI) recorded a notable increase of 2.61 percent week-on-week (WoW), closing at 101,330.85 basis points, up from 98,751.98 basis points. Concurrently, the overall market capitalization soared by N3.26 trillion to settle at N57.293 trillion, compared to the previous week’s figure of N54.035 trillion.
Despite the overall market growth, most sectors experienced weakness, with the exception of the Industrial Goods index, which saw a modest gain of 1.59 percent. Conversely, the NGX Insurance, NGX Banking, and NGX Consumer Goods indices recorded declines of 5.22 percent, 1.40 percent, and 1.21 percent, respectively. The NGX Oil & Gas index remained unchanged from the previous week.
Market breadth for the week was negative, with 22 equities appreciating in price, 56 equities depreciating, and 76 equities maintaining their previous prices. Transcorp Power emerged as the top gainer, surging by 46.38 percent to close at N351.30 per share, followed by Juli with a gain of 32.53 percent and International Energy Insurance with a 20.86 percent increase.
Conversely, Guinness Nigeria led the decliners, dropping by 17.55 percent, followed by Ecobank Transnational Incorporated (ETI) and NEM Insurance, which declined by 17.01 percent and 16.67 percent, respectively.
In terms of trading volume, a total turnover of 2.157 billion shares valued at N108.824 billion was recorded in 51,556 deals. This marked a significant increase from the previous week’s turnover of 1.882 billion shares valued at N34.149 billion.
The Financial Services Industry dominated the activity chart by volume, contributing 41.70 percent to the total equity turnover volume. The Conglomerates Industry followed closely, while the Utilities Industry traded a turnover of 208.511 million shares.
The outlook for the Nigerian stock market remains bullish, with investors anticipating further corporate announcements and portfolio rebalancing activities. Market analysts expect the positive momentum to persist, driven by renewed investor confidence and favorable economic indicators.
Cowry Assets Management Limited and Afrinvest Limited both foresee continued bullish sentiment in the market, advising investors to remain vigilant and focus on stocks with strong fundamentals.
Overall, the Nigerian stock market continues to attract investor interest, presenting opportunities for growth and wealth creation amidst evolving market dynamics.
