Stock Market Gains N6.29trn WoW as Analysts Predict Mixed Trading

The Nigerian stock market sustained its positive momentum for the third consecutive week in 2024, as the market capitalisation recorded N6.29trillion Week-on-Week (WoW) gain.

Strong buy sentiment drove the biggest weekly gains on the domestic bourse in nine years, as bulls pushed the NGX-ASI higher by 13.84 per cent to a record 94,538.12 basis points, to bring the stock Year-till-Date (YtD) growth to 26.43 per cent.

As a result, market capitalisation expanded N6.29 trillion to close the week at N51.735 trillion.

Across the sectoral performance, it was largely positive.

The NGX Industrial Goods index recorded the most significant weekly gain of 46.9 per cent. NGX Insurance index followed with a weekly gain of 14.9 per cent, while NGX

Oil & Gas and NGX Consumer Goods indices rose by 8.8 per cent and 8.2 per cent W-o-W. The NGX Banking index was the sole loser for the week by 0.1 per cent decline.

The market breadth for the week was positive as 81 equities appreciated in price, 58 equities depreciated in price, while 16 equities remained unchanged. The Initiates Plc led the gainers table by 59.78 per cent to close at N2.94, per share. Dangote Cement followed with a gain of 53.94 per cent to close at N538.80, while Honeywell Flour Mill went up by 50.77 per cent to close to N5.85, per share.

On the other side, Royal Exchange led the decliners table by 22.45 per cent to close at 76 kobo, per share. Ikeja Hotel followed with a loss of 10.57 per cent to close at N7.70, while Linkage Assurance declined by 8.16 per cent to close at N1.35, per share.

Overall, a total turnover of 5.179 billion shares worth N77.797 billion in 79,012 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 5.719 billion shares valued at N88.828 billion that exchanged hands prior week in 80,064 deals.

Meanwhile, analysts have anticipated Nigerian stock market dynamics for the new week include a mix of sentiments, profit-taking activities, and the ongoing presence of bargain hunters, all unfolding against the backdrop of expectations for unaudited fourth quarter (Q4) 2023 financial results.

The local stock market has exhibited robust bullish momentum, fueled by heightened buying interest in bellwether stocks and those with strong fundamentals.