The Nigerian stock market maintained its upward momentum last week, delivering a N3.4 trillion gain for investors despite a shortened trading week due to a public holiday honoring the late former President Mohammadu Buhari. The Nigerian Exchange Limited (NGX) saw its market capitalization climb to N83.241 trillion from N79.803 trillion, while the All-Share Index (ASI) surged 4.3% to 131,585.66 points from 126,149.59 points.
The rally was driven by strong performances in major stocks, notably in the Industrial Goods sector, with Dangote Cement up 16.47% and BUA Cement soaring 31.28% week-on-week. Other notable gainers included Stanbic IBTC (18.38%) and Nestle Foods (20.00%), boosting the year-to-date return to 27.84%.
Trading activity was robust, with 17.498 billion shares valued at N500.762 billion traded across 142,082 deals, compared to 5.390 billion shares worth N107.811 billion in 134,390 deals the previous week. The Financial Services sector dominated, accounting for 90.13% of volume and 87.42% of value, with 15.771 billion shares worth N437.763 billion traded in 66,725 deals. Market operators attributed this surge to significant share sales by Oba Otudeko, former Chairman of FirstHoldco Plc, and Tunde Hassan-Odukale, former Chairman of First Bank Nigeria, alongside a major transaction involving over one billion Fidelity Bank shares.
The ICT sector followed with 325.134 million shares valued at N3.492 billion in 9,028 deals, while the Consumer Goods sector recorded 313.424 million shares worth N20.162 billion in 14,917 deals. First Holdco Plc, FCMB Group Plc, and Fidelity Bank Plc led trading, contributing 75.60% of volume and 73.39% of value with 13.229 billion shares worth N367.498 billion.
While most NGX indices rose, the Insurance, AseM, Oil and Gas, Growth, and Sovereign Bond indices fell by 3.65%, 9.56%, 0.76%, 4.80%, and 0.57%, respectively. Looking ahead, Cordros Capital analysts suggest that investor sentiment will hinge on the Central Bank of Nigeria’s upcoming Monetary Policy Committee meeting, as participants assess its impact on yields and equity valuations.
