Weekly Wrap-Up: Investors Reap N151.9bn Gain Amid Renewed Optimism

The Nigerian stock market opened May on a resounding high, as investors welcomed the new month with a wave of optimism that lifted the equities market to fresh heights.

The Nigerian Exchange (NGX) All-Share Index (ASI) advanced by 0.23% to settle at 106,042.57 points, while market capitalization climbed by ₦151.92 billion to ₦66.65 trilion, marking a robust start to the trading month.

This bullish undertone came despite divergent sectoral performances. Gains in the Consumer Goods (+2.03%), Industrial Goods (+0.08%), and Commodities (+0.61%) sectors offset weaknesses in Banking (-1.49%), Insurance (-3.50%), and Oil & Gas (-0.17%).

However, the broader market breadth remained negative, with 40 decliners eclipsing 29 gainers—an indication of selective buying amid cautious sentiment.

Investor enthusiasm was particularly evident in the stellar performances of NAHCO, TIP, CADBURY, BETAGLASS, and CAVERTON, which posted significant gains. Conversely, DAARCOMM, VITAFOAM, MULTIVERSE, ETERNA, and ETI bore the brunt of bearish selloffs. Trading activity was decidedly vigorous.

Total turnover surged, with deal count increasing by 4.84 per cent, while traded volume and value soared by 43.84 per cent and 17.24 per cent, respectively.

In total, ₦14.96 billion worth of equities exchanged hands across 18,367 transactions involving over 565 million shares.

The rally was further bolstered by strong corporate earnings, notably from TRANSCORP (+5.8%) and PRESCO (+9.6%), whose Q1’25 results invigorated market sentiment and pushed the ASI 0.3 per cent higher weekon-week.

Month-to-date and year-to-date returns now stand at +0.1 per cent and +3.03 per cent, respectively, reinforcing investors’ growing confidence in the market’s fundamentals.

The week’s momentum was also underpinned by heightened interest in consumer and industrial stocks, driving an additional ₦182 billion gain during the four-day trading window ended May 2.

The market posted three sessions of positive closes against one day of mild retreat. While some investors seized the opportunity to take profits in the banking, insurance, and oil & gas segments, analysts remain cautiously optimistic.

“We will continue to closely monitor the market for compelling entry points into fundamentally sound stocks, particularly in anticipation of Q1’25 earnings releases,” analysts at CardinalStone Research noted.