Nigeria’s stock market continued its bullish run last week, with banking stocks leading the charge as investors rebalanced portfolios in response to corporate earnings reports.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) climbed to 105,933.03 points, marking a new high from 105,530 points in January, driven largely by gains in the financial sector.
Shares of FBN Holdings, Guaranty Trust Holding Company, and Access Holdings saw notable increases, reinforcing the banking sector’s dominance.
Meanwhile analysts attributed this trend to investor confidence in the resilience of financial institutions amid economic uncertainties.
“Investor sentiment remains strong, with significant gains across key sectors such as banking, technology, and transportation,” analysts at InvestData Consulting noted.
“We expect mixed sentiments as confidence boosts positioning on strong corporate numbers while balancing portfolios amid high inflation and earnings expectations.”
Beyond the ASI, market capitalisation surged by ₦884 billion, closing the week at ₦65.592 trillion, up from ₦64.708 trillion.
The banking sector stood out, posting a 4.7% increase in its index, outpacing the Insurance Index (1.6%), Industrial Goods Index (0.9%), and Oil & Gas Index (0.6%).
Meanwhile, trading activity remained mixed, with total trading volume declining by 5.9%, while trading value jumped by 42.3%, reflecting investors’ preference for premium stocks.
Analysts at Cordros Research believe the financial sector will remain central to market performance in the coming weeks. “The bullish momentum is expected to persist, driven by fresh corporate results and dividend announcements,” they stated.
Despite some price corrections, experts suggest investors take advantage of market fluctuations.
“The volatility and pullbacks only strengthen the upside potential,” InvestData analysts said.
“Investors should seize price corrections as opportunities to buy into value stocks.”
