NGX: Nigerian Equity Market Rebounds After N3.54trn Rise In April

After enduring a tumultuous April where it suffered a loss of N3.54 trillion, the Nigerian equity market has bounced back, marking its first weekly gain.

Investors, seeking better returns, fueled this upward trajectory, shifting focus to alternative markets.

The preceding weeks were marked by bearish trends, with corporate announcements failing to inspire confidence among investors. Banking stocks particularly took a hit, with newcomers to the N1 trillion market capitalization club witnessing declines in their market caps.

However, last week saw a notable turnaround, with the bulls dominating three out of four trading sessions. This resurgence propelled the benchmark index by 1.46 percent to reach 99,587.25 points, driven by increased buying sentiments in high tickers and blue-chip companies boasting strong fundamentals.

The impressive financial performance of corporations in Q1 and the onset of the dividend earnings season spurred a 1.46 percent increase in market capitalization, reaching N56.32 trillion over the past week. This enhancement pushed the year-to-date return of the market cap to 33.2 percent.

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Trading activity also saw a surge, with a total turnover of 1.941 billion shares valued at N32.64 billion exchanged in 35,807 deals. Financial services remained dominant, accounting for the majority of trading activities, followed by the consumer goods and conglomerate industries.

Among the top traded equities were Abbey Mortgage Bank, Guaranty Trust Holdings Company, and Access Holdings. These stocks, measured by volume, significantly contributed to the total equity turnover.

Sectoral performance varied, with the Banking and Insurance indexes leading the gainers by 9.42 percent and 0.98 percent week-on-week, respectively. Positive investor interest in financial stocks drove these gains. However, the oil & gas, industrial goods, and consumer goods indexes experienced declines due to negative price movements in certain stocks.

Notable gainers for the week included FBNH, Sterling Financial Holding Company, and UAC Nigeria, while NASCON, University Press Plc, and Neimeth Pharma Plc were among the worst-performing stocks.

Analysts anticipate continued bullish sentiments in the new week, fueled by the ongoing earning season. Investors remain optimistic about the market’s trajectory, buoyed by improving economic indicators and corporate performance.