Equity market extends rally as shareholders reap N1.4trn windfall in just four trading sessions

The Nigerian stock market maintained its upward trend on a week-on-week basis, with sustained demand from institutional investors for large-cap stocks driving the market's key performance indicators higher at the close of trading last week.

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The market capitalisation of the Nigerian Exchange Limited, which reflects the total value of stocks on the Exchange, surged to N131.165 trillion from N129.806 trillion in the previous week, resulting in investors gaining N1.359 trillion from their listed companies.

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The All Share Index appreciated by 1.03% to 203,770.43 points from 201,698.89 points, indicating a market that continues to benefit from strong liquidity inflows into key stocks, particularly in the banking, consumer goods, and industrial sectors.

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A total of 3.361 billion shares worth N151.948 billion were traded in 229,442 deals last week, representing a significant increase from the 2.856 billion shares valued at N113.597 billion that exchanged hands in 215,287 deals the previous week.

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The Financial Services Industry dominated the activity chart, accounting for 68.54% and 59.54% of the total equity turnover volume and value, respectively, with 2.303 billion shares valued at N90.467 billion traded in 98,175 deals.

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The Services Industry followed, with 264.146 million shares worth N1.977 billion traded in 12,638 deals, while the ICT Industry ranked third, with a turnover of 214.578 million shares worth N9.791 billion in 28,183 deals.

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Global oil market developments continue to significantly influence investor sentiment, with concerns over the durability of the ceasefire and supply flow restrictions through the Strait of Hormuz sustaining the risk premium in energy markets.

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For Nigeria, the sustained strength in oil prices provides a supportive backdrop for fiscal stability, external reserves, and overall investor sentiment, particularly in oil-linked equities.

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Analysts at InvestData Consulting Limited noted that the market direction will likely be influenced by a combination of domestic and global factors, including interest rate expectations, inflation trends, corporate earnings releases, and developments in the oil market.

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Investors are advised to maintain a disciplined and selective approach, focusing on stocks with strong fundamentals, consistent earnings growth, and favorable technical setups, according to analysts at InvestData Consulting Limited.