After a positive 3.44% gain in August, the benchmark index of the local bourse gained for another week, registering a 3.00%
increase week-on-week in a bull run that led to the ASI recording a new all-time high of 67,527.19 points in the midst of a
weaker broader market gains and momentum, even as Nigeria’s economic headwinds continue to weigh o n businesses and
the purchasing power of Nigerians. This bullish momentum has been primarily attributed to stronger investor sentiment,
buying activities and strategic sectoral positioning.
As a result of this encouraging momentum, the total market capitalization of listed equities also experienced a concurrent
uptick of 3.00% week-on-week, reaching a noteworthy N36.95 trillion compared to the preceding week’s value of N35.88 trillion.
This ascent has translated into a substantial profit increment of N1.08 trillion for investors. It’s noteworthy, however, that the
year-to-date return of the AllShare Index (ASI) inched further to an impressive 31.76%, underscoring the Nigerian market’s
commendable resilience in the face of prevailing global uncertainties.
A sector-wise analysis shows a bullish sectoral performance and was evidenced in the Consumer Goods sector which emerged as the leading gainer this week with +7.58% and was followed by the oil & gas, banking, industrial and Insurance Services sectors that have also been particularly pronounced gainers, showcasing respective week-on-week increments of +5.38%, +5.11%, +2.00%, and +0.80%.
Key market players such as NAHCO, DANGSUGAR, SEPLAT, MBENEFIT, LASACO have significantly contributed to these
sectoral gains.
Trading activity throughout the week has been characterized by heightened volumes and value. The weekly tally of deals
registered a 30.72% increase, reaching a total of 40,736 deals. Moreover, the average traded volume witnessed a robust surge
of 38.48%, settling at 2.51 billion units. Also, the weekly average value displayed a modest uptick of 12.01%, measuring
N32.82 billion in contrast to the preceding week’s figure of N29.29 billion.
As the week came to a close, several stocks demonstrated noteworthy positive rallies, effectively bolstering market sentiment.
NAHCO, led the charge with a remarkable surge of 42%, closely trailed by ABCTRANS at 40%, and DANGSUGAR at 27%.
These exceptional performances captured the discerning attention of astute investors. Conversely, MAYBAKER faced a
downturn of 12%, while LINKASSURE and ELLAHLAKES experienced respective declines of 10% and 7% due to adverse price
dynamics.
Looking ahead, we anticipate that the market sentiment will remain mixed due to ongoing portfolio realignments. This will be
influenced by a combination of bargain hunting and uncertainty regarding future money market yields, particularly in light of
the upcoming earnings reports from first-tier banks and the continuation of sectoral rotation.
Despite this mixed sentiment, it’s worth noting that pullbacks in the market are creating opportunities for investors and these opportunities coincide with the government’s ongoing economic reforms. Meanwhile, we continue to advise investors on taking positions in stocks with sound fundamentals.
