The Nigerian Exchange Limited (NGX) experienced a resurgence in buying sentiment last week as the deadline for submitting 2024 audited financial statements for companies with a December year-end approached.
As a result, the NGX All Share Index (ASI) rose by 0.7%, closing at 105,660.64 points last Friday, up from 104,962.96 points the previous day.
Similarly, market capitalisation, a key indicator that measures the total value of securities listed on the NGX, increased by over N438 billion, closing at N66.257 trillion compared to N65.819 trillion the previous week.
Market participants attributed the market’s uptrend to improved momentum and expectations of strong earnings from companies set to release their financial results soon. They also noted that this is occurring alongside the usual end-of-quarter window dressing by market operators and fund managers, which typically begins ahead of the statutory deadline for submitting 2024 audited financial statements for companies with a December year-end.
An analysis of last week’s trading activity revealed that the market’s positive performance was driven by gains in GTCO, which surged by 18.2%, and Zenith Bank, which rose by 3.1%, following the release of their respective full-year 2024 audited financial statements and dividend announcements.
As a result, Month-to-Date (MtD) and Year-to-Date (YtD) returns settled at -2.0% and +2.7%, respectively.
Trading activity was strong, with volume and value increasing significantly by 161.5% and 743.1% Week-on-Week (W/W), respectively.
However, sectoral performance was mixed. The Banking Index gained 5.6%, the Insurance Index rose by 1.9%, and the Consumer Goods Index edged up by 0.3%, while the Oil & Gas Index declined by 1.7%, and the Industrial Goods Index remained unchanged.
Regarding the market outlook, analysts at Cordros Research anticipate continued choppy trading in the holiday-shortened week, with potential profit-taking on recent gainers alongside renewed bargain hunting in undervalued stocks.
Similarly, analysts at InvestData Consulting expect mixed sentiment to persist as investors balance bargain hunting with profit-taking, especially as more corporate earnings reports and dividend announcements are released.
