Equities market gains N1trn as ASI crosses 100,000-point mark

By Chukwuma Umeorah

The Nigerian equities market sustained it’s upbeat last week, as the NGX All-Share Index (ASI) surged above the 100,000-point threshold for the first time since July 2024. The ASI closed at 101,129.09 points, posting a 1.76 per cent week-on-week (WoW) increase, reflecting heightened investor confidence driven by festive season optimism and favorable market conditions.

Similarly, the market capitalisation rose by N1.06 trillion to reach N61.3 trillion, also up by 1.76 per cent (WoW). The rally signals increased investor appetite for Nigerian equities, spurred by year-end portfolio adjustments and a positive macroeconomic outlook. The ASI’s year-to-date return stands at an impressive 35.25 per cent, solidifying its position as the best-performing index of 2024.

Despite the bullish sentiment, trading activities showed mixed trends. While the volume of shares traded fell by 10.32 per cent to 2.44 billion units, the value of transactions jumped by 78.84 per cent to N88.81 billion across 48,216 deals. This indicates cautious repositioning by market participants in response to the recently published November 2024 inflation data.

Sectoral performance remained robust, with the NGX Insurance and NGX Banking indices emerging as the week’s top gainers, rising by 8.83 per cent and 3.23 per cent WoW respectively. Gains were also recorded in the NGX Consumer Goods (+2.92 percent) and NGX Oil & Gas (+0.99 per cent) sectors, fueled by strong fundamentals and heightened interest in blue-chip counters. However, the NGX Industrial Goods index dipped by 0.83 per cent due to profit taking activities.

On the stock-specific front, MRS Oil Plc led the gainers with a 36.4 per cent rise, followed by Eterna Oil which gained 32.4 per cent, Honeywell Flour added 31.5 per cent and Livestock Feeds gained 30.2 per cent. Conversely, John Holt Plc topped the losers, declining by 18.7 per cent, alongside Multiverse Exploration losing 16.8 per cent.

For the coming week, analysts predict sustained bullish momentum in the equities market, underpinned by year-end portfolio rebalancing and macroeconomic optimism.

According to Cowry Research in their weekly note, “ As the year draws to a close, strategic positioning is anticipated to guide trading decisions, promising an eventful conclusion to a record-breaking year for the local bourse.”