The Nigerian equities market closed the week ended 13 November 2024 on a bullish note, with the NGX All-Share Index (ASI) advancing by 1.19 per cent to settle at 99,378.06 points. This brings the market closer to the 100,000-point milestone, driven by improved investor sentiment and favourable dynamics across sectors.
The market capitalisation mirrored this growth, rising by N707.61 billion or 1.19 per week-on-week (WoW) to cross the N60 trillion mark, settling at N60.24 trillion. Investor repositioning for year-end opportunities boosted the market, with a year-to-date return reaching an impressive 32.90 per cent.
The market recorded 51 gainers against 35 laggards during the week. However, trading activities declined as investors remained cautious ahead of the anticipated November Consumer Price Index (CPI) report.
Meanwhile, total trade volume fell by 30.12 per cent to 2.72 billion units, while transaction value dropped significantly by 43.41 per cent to N49.66 billion. The number of deals also saw a slight dip of 1.74 per cent closing at 43,103 transactions. Analysts notes that the tepid trading underscored investor caution over inflationary concerns and the traditional “Christmas blues” effect.
The sectoral performance was mixed but predominantly bullish. The NGX Oil & Gas sector led the charge with a 7.61 per cent gain, driven by strong demand for energy stocks. The NGX Insurance sector also performed well, appreciating 7.52 per cent weekly. Meanwhile, the NGX Consumer Goods and NGX Banking indices posted modest weekly gains of 1.01 per cent and 0.16 per cent, respectively, as investors favored blue-chip stocks. Conversely, the NGX Industrial Goods sector underperformed, shedding 0.60 per cent as mild profit-taking weighed on recent momentum.
At the stock level, Golden Guinea Breweries emerged as the top gainer with an 80.69 per cent increase. Other notable gainers included African Prudential (+59 per cent), Tantalizer (+52 per cent), Conoil (+34 per cent), and Coronation Insurance, which added 25 per cent to its value. On the flip side, NSL Technology led the losers, declining by 23 per cent, followed by Austin Laz which shed 15 per cent. Haldane McCall and Julius Berger lost 11 per cent and 10 per cent respectively.
Cowry Research, in their weekly note “expect the bullish momentum to persist as year-end rallies and anticipated strong full-year corporate results drive investor confidence.
“Investors are also expected to closely monitor macroeconomic indicators, particularly the release of November 2024 inflation figures, which could shape sentiment and influence portfolio adjustments. Developments in the foreign exchange market will similarly play a critical role as market participants evaluate the impact of economic data on investment decisions.”