The Nigerian stock market closed last week on a positive note, with investors gaining over N794 billion. This growth was largely driven by high demand for MTN Nigeria shares after the Nigeria Communications Commission (NCC) approved a 50% tariff hike for telecommunication services, as well as Transcorp Power, which reported strong earnings for its 2024 financial year.
Analysts noted that the positive market reaction was particularly fueled by Transcorp Power’s 8% increase in share price following its impressive earnings release and dividend payment.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) advanced by 1.2% week-on-week (W/W), closing on Friday at 103,598.46 points. This brought the Year-to-Date (YtD) return to 0.7%. Market activity also showed strong growth, with trading volume and value increasing by 36.3% W/W and 28.5% W/W, respectively.
Sector Performance Mixed
Sectoral performance was mixed for the week. The Banking Index rose by 4.1%, and the Industrial Goods Index inched up by 0.1%. However, the Consumer Goods Index, Insurance Index, and Oil & Gas Index saw declines of 1.2%, 1.2%, and 0.9%, respectively.
A total of 44 equities recorded price appreciation during the week, compared to 33 the previous week. Conversely, 44 equities recorded price declines, a decrease from 57 the previous week. Meanwhile, 64 equities remained unchanged, up from 62 in the previous week.
Top Gainers and Losers
On the gainers’ side, SCOA Nigeria led the list with a 59.68% rise, followed by EUNISELL Interlinked Plc, which saw a significant decline of 18.95%. John Holt also dropped by 18.47%.
Outlook for the Market
Analysts at Cordros Research are optimistic about the market outlook, as the 2024 full-year earnings season begins. They expect an influx of corporate earnings and dividend declarations in the coming weeks, which could drive buying activities and improve market sentiment.
InvestData Consulting Limited analysts also predict mixed market sentiments, with players digesting the corporate earnings reports. They noted that sector rotation and portfolio rebalancing will continue, as investors seek to take advantage of price corrections and reposition in light of high inflation and earnings expectations.
Despite potential volatility and pullbacks, analysts believe there is significant upside potential, encouraging investors to capitalize on price corrections and stay informed about global and domestic trends and events.
