Equities investors earn N608.7bn in 3 days as YTD hits 36.6%

The Nigerian equities market continued its rally into the just-concluded week as it sustained its upward momentum, delivering a 0.99 percent week-on-week gain.

During the three days trading activities, bulls persist as equities investors earn N608.74 billion cumulatively, Market capitalisation mirrored this upward trend, to close at N61.91 trillion.

The benchmark NGX All-Share Index (ASI) advanced to 102,133.30 points, remaining firmly above the 102,000-point threshold.

This performance was bolstered by strong buying interest across key sectors, a reflection of growing investor confidence driven by year-end window-dressing activities and the optimistic post-Christmas equity market sentiment.

This increase underscores the favourable market sentiment and robust demand for Nigerian equities, as highlighted by the rising Money Flow Index (MFI).

Consequently, the year-to-date return of the ASI improved significantly to an impressive 36.6 percent.

Investor optimism was further evidenced by the impressive market breadth, with 64 gainers surpassing 20 losers in a shortened trading week, which comprised just three sessions due to the Christmas holidays.

Despite these gains, market activity was somewhat muted, as participants focused on portfolio rebalancing and adjustments ahead of the final trading days of 2024.

The total weekly traded volume fell by 43.16 percent to 1.39 billion units, while the value of transactions dropped by 41.42 percent to N52.02 billion. The average number of weekly deals also declined, with 33,410 transactions recorded, representing a 32.12 percent reduction compared to the previous week.

Sectoral performance remained predominantly positive, with four of the five major indices closing in the green. The NGX Insurance Index led the charge, surging by 7.87 percent week-on-week due to strong buy-side interest in counters such as Universal Insurance, Royal Exchange, Prestige Insurance and Sunu Assurance.

The NGX-Consumer Goods Index followed closely, advancing by 3.13 percent, driven by bullish sentiment around PZ Cussons and Ikeja Hotel. The NGX-Banking and NGX-Industrial Goods indices also posted gains of 1.97 percent and 0.09 percent, respectively, buoyed by demand for stocks like Fidelity Bank, Sterling Financial Holdings, May&Baker, Cutix and Stanbic IBTC Holdings.

Conversely, the NGX-Oil & Gas Index was the sole laggard, recording a marginal decline of 0.12 percent, largely due to profit-taking activities in Aradel Holdings, Eternal and Oando.

At the end of the week’s trading activities, Hig, Ikeja Hotel emerged as the best-performing stock, appreciating by 32.8 percent. It was followed by Multiverse, which gained 32.6 percent, PZ Cussons with a 26.1 percent increase, Universal Insurance at 25 percent, and Royal Exchange, which rose by 24.7 percent.

On the flip side, Thomas Wyatt, Aradel Holdings, Austin Laz, Daat Communication and Neimeth were the week’s laggards, reflecting profit-taking and subdued interest in these counters.

Looking ahead, analysts believe the Nigerian equities market is expected to maintain its upward trajectory as investors continue to position themselves in fundamentally strong stocks with significant growth potential. “Year-end window-dressing activities and preparations for the new trading year are anticipated to provide additional support to market momentum. With favourable market internals and attractive valuations, the domestic equities market appears well-positioned for further growth in the coming weeks.”

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