The benchmark Nigerian Exchange Limited (NGX) All Share Index (ASI) Year-to-Date, YtD, capital gain of 35.2% last week, beating the runaway inflation rate in Nigeria, which stood at 34.6% in November.
The NGX ASI recorded the highest weekly gain since 15th March 2024 as rally in blue chip companies lifted the market performance closing on Friday at 101,129.09 points from 99,378.06 points the previous week.
The rally in ARADEL led to increase in its price by 20.73% Week on Week, W/W, GTCO 7.65% and Zenith Bank 4.20% while BUA Cement declined by 2.11%, MTN Nigeria 0.28% and ACCESSCORP 0.62%.
Meanwhile, investors gained over N1.062 trillion last week as market capitalisation, which represents the total value of investment on the Exchange closed at N61.303 trillion from N60.241 trillion the previous week.
The bullish momentum and recovery on the NGX, according to analysts, increased on buying interests across the major sectors of the market, especially with the positive sentiments for consumers goods giants like Honeywell Flour Mills, Nigeria Breweries, Nestle and others.
The report by Vanguard newspaper quoted analysts as saying that the NGX’s index revealed an uptrend with strong money flow that supports bullish trend, as players are taking last minute position ahead of Xmas day, with increasing number of companies hitting a new 52-week high. Just as end of the year positioning continued on the back of cross deals and others in the market.
It added that during the week under review MTNN and Fidelity Bank notified the NGX of their closed period for 2024 financial year, while Aradel Holdings informed the market of ministerial consent for the acquisition of SPDC limited. Just as Seplat Energies and Cutix notified the market of insiders dealings.
Commenting on the market outlook, Analysts at InvestData Consulting stated: “We expect positive sentiment to continue amid profit taking, as bargain hunters position, while rebalancing their portfolios midst high inflation, low valuation and position taking by smart money for year-end. Also, sector rotation and portfolio rebalancing continued in the market with investors taking advantage of pullbacks and correction to buy into value.
This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.
GIK/APA