The Nigerian equities market continued its bullish momentum last week, posting its highest week-on-week gain of the year as investor demand across key sectors lifted market valuations. Investors gained over N8.137 trillion in equity value, pushing the Nigerian Exchange Limited, NGX, market capitalisation to N126.164 trillion from N117.027 trillion the previous week.
The NGX All Share Index, ASI, climbed 6.95% to close at 194,989.77 points, reflecting growing confidence in fundamentally strong counters. Analysts attributed the surge to selective institutional accumulation and renewed positioning in high-quality stocks.
Global oil prices also played a significant role in supporting market sentiment. Brent crude traded above $71 per barrel, while WTI hovered near $66 amid geopolitical tensions in the Middle East, sustaining the oil market risk premium. Analysts note that firm oil prices underpin Nigeria’s fiscal stability and boost foreign investor interest in the domestic equity market.
Trading activity improved sharply, with total volume and value rising 148.4% and 87.1% week-on-week respectively. Sectoral performance aligned with overall market optimism, with the Industrial Goods Index up 10.1%, Oil & Gas 8.7%, Consumer Goods 6.1%, Banking 5.7%, and Insurance 4.7%.
Looking ahead, market participants are expected to monitor audited earnings releases and dividend declarations across sectors including Cement, Telcos, Oil & Gas, and Consumer Goods. Analysts anticipate that the Central Bank of Nigeria’s Monetary Policy Committee may reduce the policy rate by 50 basis points to 26.5%, potentially further stimulating market activity.
Analysts advise investors to stay attentive to liquidity trends and sector rotation patterns, noting that short-term volatility may occur from profit-taking in recently rallied stocks. Sustained institutional positioning and strong oil price dynamics, however, are expected to maintain the broader bullish outlook, with the ASI’s 190,000 support level serving as a key benchmark.
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