Emmanuel Ochayi
The Nigerian stock market closed the trading week positively, with the All-Share Index (ASI) gaining 86.09 points to settle at 97,606.63 as of October 11, 2024.
This marks a slight increase of 0.09% compared to the previous week, where the market closed at 97,520.54. Market volume also surged, with a total of 1.9 billion shares traded, an 18% rise from the previous week’s 1.6 billion shares.
Join our WhatsApp ChannelPositive Week Amidst Mixed Sectoral Performance
Despite early week losses, the stock market showed resilience, with a notable rebound on Friday. “We saw the market start strong on Monday, but it faced declines midweek. Luckily, Friday’s performance helped cushion the overall effect,” said a trader from Lagos.
The NGX Premium Index climbed by 0.75%, driven by strong performances in select sectors. The NGX 30 saw a gain of 0.61%, while the NGX Main Board Index recorded a slight dip of 0.28%.
One of the standout performers was the NGX Oil and Gas Index, which rose by 1.57%, mainly due to a 5% weekly increase in SEPLAT shares. Banking and insurance stocks also ended the week in positive territory, with the NGX Banking Index gaining 0.47% and the NGX Insurance Index rising by 0.08%.
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However, not all sectors saw gains. The Consumer Goods and Industrial Goods indices faced minor setbacks, with declines of 1.25% and 0.13%, respectively.
Stock Market Gainers and Losers
In terms of individual stock performance, MECURE INDUSTRIES PLC led the pack of gainers, with a 19.53% rise. It was followed by UNIVERSITY PRESS PLC, which saw a 17.51% increase, and LASACO ASSURANCE PLC, which gained 17.39%. Other notable gainers included:
- FIDELITY BANK PLC: up 13.08% to N14.70
- P Z CUSSONS NIGERIA PLC: up 11.61% to N19.70
- Julius Berger NIG. PLC: up 9.33% to N164.00
- ROYAL EXCHANGE PLC: up 8.96% to N0.73
On the losing side, Tripple GEE AND COMPANY PLC saw the largest drop, falling by 59.56%. Other significant losers included DAAR COMMUNICATIONS PLC, down 25.00%, and AFRICA PRUDENTIAL PLC, which declined by 13.15%. Regency Assurance PLC and Tantalizers PLC also posted declines of 12.20% and 10.45%, respectively.
Corporate Announcements Impacting the Stock Market
Several corporate announcements shaped market movements during the week. Access Holdings PLC received approval to establish a banking subsidiary in Namibia, which is expected to broaden its reach across Africa. Presco PLC made headlines with the resignation of some directors, while Conoil PLC declared a dividend for its shareholders.
Ecobank Transnational Incorporated also made a key announcement regarding the pricing of its ETI Eurobond, and Geregu Power PLC published its Q3 2024 financial statement, providing insight into its operational performance.
Market Outlook
Looking ahead, the All-Share Index is expected to maintain a steady correction, recovering from a notable dip to 96,580 points in August 2024. “Investors are optimistic that the market will push beyond the 99,000-point mark soon,” said a market analyst. The bullish trend, combined with growing investor confidence and positive momentum in key sectors, could pave the way for continued growth in the stock market.
Investors are closely monitoring large-cap stocks, which have shown strong recovery signs. The upcoming weeks will be crucial in determining if the Nigerian stock market can sustain its upward trajectory.
The Nigerian stock market’s modest gains and increased trading volume reflect growing investor interest. Although some sectors faced declines, the overall market sentiment remains positive, with hopes for continued gains in the coming weeks.
Traders and investors are keeping a close watch on key developments, particularly in the oil and banking sectors, which could drive further market activity.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
