BY FESTUS OKOROMADU
The Nigerian Exchange saw a marginal increase in trading activities last week, with the benchmark index rising by 1.12 percent week-on-week to reach 67,200.69 points, sustaining the gains from the previous week.
The market remained in a consolidation range with low trading volume and a positive market breadth.
The positive trend was driven by increasing expectations for the Q3 earnings season, despite macroeconomic policy uncertainties and corporate announcements of closed periods.
The total market capitalization of listed equities also increased by 1.12 percent week-on-week, reaching N36.92 trillion, and the year-to-date return of the All-Share Index rose to 31.12 percent.
Four out of five sessions in the week were in a bullish trend, resulting in N409.9 billion in weekly profits, primarily driven by positive price movements in the Industrial goods index.
Sectoral performance was mostly positive, with four out of five indexes closing in the green, except for the banking index, which ended in negative territory.
The Industrial and Consumer goods sectors led the weekly gainers, with gains of 5.03 percent and 1.39 percent week-on-week, respectively.
The Insurance and Oil & Gas sectors also saw gains of 0.92 percent and 0.33 percent each.
However, the Banking sector was the lone decliner, with a 0.78 percent decrease.
Throughout the week, trading activity was positive but characterized by low trading volume and a positive market breadth.
The weekly tally of deals increased by 6.15 percent week -on-week to 29,683 deals. The average traded volume, on the other hand, decreased by 39.02 percent, settling at 1.47 billion units. The weekly average value rose by 10.47 percent week-on-week, reaching a value of N24.43 billion.
Some stocks displayed exceptional performance, with strong investor interest. BUACEMENT, CHIPLC, NB, and DANGSUGAR were the top performers, with their share prices rising by 13 percent, 13 percent, 9 percent, and 7 percent, respectively.
On the downside, PRESTIGE, PRESCO, ETI, and STERLINGNG were the laggards of the week, with their prices declining by 10 percent, 10 percent, 5 percent, and 5 percent, week-on-week, respectively.
On the prospect of the market in the new week, Cowry Research experts say they anticipate a mixed market sentiment in the coming days, to be driven by both bargain hunting and portfolio repositioning.
“However, equity investors are likely to keep a close watch on the September Consumer Price Index (CPI) from the NBS by Monday and the release of Q3 corporate earnings reports. This mix of sentiments may also be influenced by ongoing sectoral rotation.
“Also, we anticipate foreign portfolio investors to digest and positively react to the new foreign exchange policy by the Central Bank of Nigeria and this direction will play a crucial role in shaping market dynamics as investors seek clarity on the broader economic landscape. Meanwhile, we continue to advise investors on taking positions in stocks with sound fundamentals,” the experts said.
