NGX extends rally as investors reap N1.8trn in 3 days

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By Peter Egwuatu

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Trading on the Nigerian Exchange (NGX) closed Week on Week, WoW, on a positive note, as investors reaped over N1.765 trillion from their investment listed on the Nigerian Exchange Limited, NGX in the three days trading sessions last week.

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Specifically, the NGX market capitalisation, which represents the total value of listed equities, surged to N129.125 trillion from N127.360 trillion the previous week.

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In the same manner, another strong performance indicator, NGX All Share Index, which measures the price movement of the equities rose by 1.4% to close last week at 201,156.86 points from 198,407.30 points the previous week.

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In two of the three trading sessions last week, investor sentiment was supported by a softer headline inflation print for February, alongside selective bargain hunting in bellwether names such as BUA Cement, which went up by 21.0%, Zenith Bank 14.6%, Dangote Cement 1.9% and WAPCO 5.9%. Accordingly, the Month-to-Date and Year-to- Date, YtD returns strengthened to 4.3% and 29.3%, respectively. On market activity, total trading volume and value advanced by 166.2% WoW and 62.3% WoW, respectively.

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Sectoral performance was mixed, as the Industrial Goods Index gained 5.7% Oil & Gas Index up 1.5%, and Consumer Goods Index 0.6%, while the Insurance Index declined by -4.6% and Banking Index -1.0%.

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Commenting on the market outlook, analysts at Cordros Capital stated: “Looking ahead, investor attention is expected to shift toward corporate actions, with major Banks set to release audited full year results and dividend declarations next week. We expect positioning ahead of qualification dates to support selective buying interest, particularly across fundamentally sound, high-yield counters”

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Reacting as well, analysts at InvestData Consulting Limited, said : “Looking ahead, the market is expected to remain volatile in the short term, influenced by post-holiday liquidity conditions, institutional re-entry, and global market developments.

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While the long-term outlook remains positive, supported by strong corporate fundamentals and attractive valuations, short-term risks persist. Investors are likely to adopt a more selective approach, focusing on fundamentally sound stocks with strong earnings visibility and defensive characteristics.”

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