Nigeria’s stock market maintainted its rebound streak last week, ahead of potential January effects in apparent higher inflow of funds from both domestic and foreign investors strengthening the market following buying sentiments across some major sectors of the economy.
The market witnessed an increasing number of companies in the week under review, hitting a new 52-week high, just as end of the year positioning continued.
During the week under review , the following companies:Trans-Nationwide Express, NEM Insurance and Custodian Investment Plc released their first quarter, Q1 and third quarter, Q3 2025 earnings forecast respectively, to guide the investing public. Just as Seplat informed the market of completion of the acquisition of MPNU, while Accesscorp signed agreement to acquire 100% of South Africa’s Bidvest Bank. Ucap updated the exchange on insider dealings in its shares.
MTN Nigeria, Oando, and Conoil contributed majorly to lift the market, gaining Week on Week, W/W 3.5%, 9.5%, and 33.5% respectively to drive upward the major index, NGX All Share Index, ASI to 99,210.75 points from 98,210.75 points the previous week.
Sequentially, the Month-to-Date, MtD and Year-to-Date, YtD returns improved to 1.9% and 32.9%, respectively. However, market activity was subdued, as trading volume and value declined by 30.1% W/W and 43.4% W/W, respectively. Sectoral performance was broadly positive, as the Oil & Gas Index gained 7.6% , Insurance Index 5.5% , Consumer Goods Index 1.0% and Banking Index 0.2%, while the Industrial Goods Index declined by 0.6% as the sole loser of the week.
Commenting on market outlook, Analysts at Cordros Capital,stated: “Looking ahead, choppy trading is expected to persist but with a bullish undertone as investors continue to prioritise fundamentally strong stocks ahead of the new year.”
In their own comments, Analysts at InvestData Consulting Limited, stated : ” We expect volatility to continue amid profit taking, as bargain hunters position, while rebalancing their portfolios midst profit taking, low valuation and position taking by smart money for year-end. Also, sector rotation and portfolio rebalancing continued in the market with investors taking advantage of pullbacks and correction to buy into value.
This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically”.
