Investors Pocket ₦2.16 Trillion as Stock Market Soars Ahead of Q3 Earnings and Inflation Report

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Olori Uwem

Well-Known Member
Mar 18, 2024
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Investors Pocket ₦2.16 Trillion as Stock Market Soars Ahead of Q3 Earnings and Inflation Report

Overview

Investors on the Nigerian Exchange (NGX) had a record-breaking week, gaining ₦2.16 trillion in market value — the highest weekly gain so far in 2025. This marks the fifth consecutive week of market growth, fueled by optimism ahead of third-quarter (Q3) earnings releases and the September inflation report.

Market Performance

At the close of trading on Friday, the market capitalization — the total value of all listed equities — rose from ₦91.135 trillion to ₦93.296 trillion, reflecting investors’ growing confidence.

Similarly, the NGX All-Share Index (ASI), a key performance indicator, climbed 2.4% to close at 146,988.04 points, up from 143,584.04 points the previous week.

This strong performance pushed the market’s Month-to-Date (MtD) return to +3.0% and Year-to-Date (YTD) return to +42.8%, signaling one of the most impressive bullish runs of the year.

Drivers of the Rally

The surge was largely powered by price gains in major blue-chip stocks, including:
• MTN Nigeria (+10.8%)
• Dangote Cement (+9.5%)
• Seplat Energy (+10.0%)
• Lafarge Africa (WAPCO) (+2.7%)
• Stanbic IBTC (+2.3%)

These heavyweight stocks collectively lifted the market despite a slowdown in overall trading activity.

Trading Activity

While prices rose, trading momentum eased.
• Volume traded dropped by 72.8% week-on-week,
• Value of transactions declined by 21.1% week-on-week.

This moderation indicates that while investors remain bullish, many are positioning ahead of key corporate disclosures rather than executing heavy trades.

Sectoral Highlights

Sector performance was broadly positive across the market:
• Industrial Goods Index: +4.2%
• Insurance Index: +3.7%
• Oil & Gas Index: +2.9%
• Consumer Goods Index: +0.8%
• Banking Index: -0.4% (the only sector to close lower)

The slight dip in the banking index suggests mild profit-taking after earlier rallies.

Analyst Insights

Cordros Research analysts said market sentiment is expected to remain largely upbeat in the coming week, driven by expectations of strong Q3 corporate earnings that could confirm the resilience of listed companies.

They added that investors will keep an eye on September inflation data, as a slowdown in inflation could raise the odds of a Monetary Policy Committee (MPC) rate cut in November, further boosting equities.

InvestData Consulting Limited also projected a mixed trading outlook, noting that profit-taking might occur as investors rebalance their portfolios ahead of earnings releases. However, they emphasized that pullbacks would create fresh buying opportunities, especially amid signs of improving macroeconomic indicators.

According to their note:

“The market will remain driven by bargain hunting, sector rotation, and economic reforms that continue to strengthen investor confidence and guide market direction.”

Outlook

With earnings season around the corner, investors are bracing for a wave of company results that could set the tone for market direction in the fourth quarter.
If Q3 earnings exceed expectations and inflation moderates, analysts expect renewed momentum in equity prices, possibly extending the NGX’s bullish run into the year’s end.