Nigeria’s All-Share Index Surges 1.97% Week-on-Week

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The trading week concludes with the all-share index posting a robust 1.97% week-on-week gain, reaching 104,421.23 points. Despite early-week profit-taking and portfolio adjustments impacting stock prices, the market rebounded, driven by heightened volatility, corporate earnings releases, and anticipation of the dividend season.

As the market enters the peak of the earnings reporting season, sentiments and fundamental earnings factors play a crucial role in steering momentum and liquidity levels. Early filers witnessed a strong reaction from market players, resulting in increased trading volumes and positive market breadth. The resurgence of buying interest, particularly in banking stocks, propelled the market beyond the psychological 104,000-point threshold.

Year-to-date, the index records an impressive return of 39.7%, contributing to a 2% weekly increase in the market capitalization of listed equities to N57 trillion. Investor gains reached N1.12 trillion as interest surged in industrial and consumer goods stocks despite prevailing market volatility.

Sectoral performance for the week paints a mixed picture, with three out of the five sectors experiencing declines. Banking and insurance indexes retreated by 4.52% and 4.07%, primarily attributed to price drops in GTCO, ZENITH, ROYALEX, and NEM. Conversely, the industrial index outperformed, recording a 6.36% week-on-week gain, driven by increased prices and buying interest in DANGCEM and BUACEM. The consumer goods index also ended the week positively, rising by 1.30%, fueled by upward price movements in MEYER and MCNICHOLS. However, the oil & gas index witnessed a dip due to waning sentiment in ETERNA, resulting in a 2.47% decline.

Despite the overall positive performance, market participation levels remained robust, reflecting positive market breadth. Total traded volume increased by 30.56% to 3.89 billion units, with the number of trades rising by 1.70% to 69,117 deals. The weekly traded value saw a notable uptick, surging by 64.40% to N95.15 billion.

Top-performing stocks at the close of the week included TRIPPLE GEE (+42%), MEYER (+21%), CORNERST (+20%), JULI (+19%), and GEREGU (+15%). Conversely, stocks like VERITASKAP (-23%), DAARCOMM (-22%), ETERNA (-20%), CADBURY (-13%), and MAYBAKER (-16%) experienced declines in their share prices, respectively.

Looking ahead to the coming week, positive sentiments are expected to continue in the local stock market. However, a mixed trend is anticipated with a possibility of profit-taking, as investors are likely to continue sectoral rotation, capitalizing on stocks experiencing pullbacks to position themselves strategically. This rotation strategy is expected to create further buying opportunities, especially in anticipation of more earnings releases in the corporate reporting season. Amidst these developments, investors are advised to take positions in stocks with consistent track records of dividend payments and strong fundamentals, supporting earnings growth.”

Godwin Okafor
Godwin Okaforhttps://naija247news.com
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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