The Nigerian stock market maintained its strong bullish momentum last week as investors gained an estimated N3.34 trillion amid sustained buying pressure across banking, consumer goods and industrial stocks.
Trading activities on the Nigerian Exchange Group reflected renewed investor confidence, with both institutional and retail investors increasing positions in anticipation of stronger corporate earnings and improved dividend payouts in the second half of the year.
Market capitalisation rises above N160 trillion
Market analysis showed that total market capitalisation climbed from N157.094 trillion to N160.443 trillion week-on-week, highlighting the strong positive sentiment across the equities market.
Similarly, the NGX All Share Index advanced by 2.3 percent to close at 250,330.92 points compared to 244,775.83 points recorded the previous week.
The rally also pushed the market’s Month-to-Date return to 3.3 percent, while Year-to-Date returns surged to an impressive 60.9 percent.
Banking and industrial stocks drive rally
Trading activity improved significantly during the week, with total trading volume increasing by 18.4 percent and total transaction value rising by 24.3 percent week-on-week.
Sector performance remained largely positive:
- Industrial Goods Index gained 4.7%
- Banking Index advanced 2.8%
- Insurance Index rose 2.7%
- Consumer Goods Index added 1.6%
- Oil and Gas Index declined by 1.2%
Analysts noted that sustained accumulation in highly capitalised banking stocks played a major role in driving the market higher.
Analysts project mixed trading outlook
Analysts at Cordros Asset Management projected that trading activities in the coming week may remain volatile as investors balance fresh buying opportunities with profit-taking activities.
The firm also noted that investors would closely monitor the outcome of the upcoming Monetary Policy Committee meeting scheduled for May 20, with expectations that the Monetary Policy Rate may remain unchanged.
Meanwhile, analysts at InvestData Consulting Limited stated that the sustained bullish sentiment reflected improving investor appetite for equities amid ongoing macroeconomic reforms and expectations of stronger corporate performance.
According to the firm, liquidity inflows, earnings expectations and relative attractiveness of equities compared to fixed-income investments are likely to continue supporting market momentum.
However, analysts also warned that intermittent profit-taking could emerge as several highly capitalised stocks continue to trade within overbought territory following the market’s extended rally.