Nigerian equities extended their bullish run last week as investors added about N1.67 trillion in value to their portfolios, with the stock market closing higher on a week-on-week basis.
According to the capital market analysis by Vangiuard newspaper on Monday, the Nigerian equities market remained bullish despite the Yuletide slowdown in trading activities, reflecting sustained confidence in fundamentally strong stocks.
It explained that investors gained over N1.672 trillion during the week, with total market capitalisation rising to N96.946 trillion from N95.264 trillion recorded in the previous week.
In the same vein, the NGX All-Share Index, ASI, advanced by 1.8 per cent to close at 152,057.26 points, reflecting sustained buying interest and improved market sentiment.
It noted that trading activities during the week indicated that confidence in earnings quality and medium- to long-term growth prospects remained the key driver of investment decisions, although participants adopted a more cautious and selective stance in positioning.
According to the report, demand was particularly strong in several blue-chip and mid-cap stocks, including Nestle, Guinness, Mercure, FirstHoldCo, UACN, Vitafoam, Oando, UBA and Access Holdings, among others.
These stocks recorded renewed accumulation on the back of strong fundamentals, improving price momentum and expectations of resilient earnings performance.
The sectorial performance was broadly positive, reinforcing the market’s upward trend. The Consumer Goods Index led the gainers, rising by 6.1 per cent, followed by the Insurance Index, which advanced by 3.1 per cent, while the Banking Index gained 2.2 per cent, while the Industrial Goods Index appreciated by 0.7 per cent. However, the Oil and Gas Index bucked the positive trend, declining marginally by 0.2 per cent.
The report quoted some analysts at Cordros Research as saying that the coming trading week, which is shortened by the holiday, is likely to witness quieter and choppier market activities, largely driven by year-end portfolio rebalancing.
GIK/APA
