Nigerian Stock Market Surges as Strong Earnings Drive N1.35 Trillion Capitalisation Growth
The Nigerian equities market maintained its bullish trend for the second consecutive week in February, recording a N1.35 trillion surge in market capitalisation. This impressive growth was fueled by strong corporate earnings, increased investor confidence, and sectoral performances.
Market Performance: Key Highlights
• All-Share Index (ASI): Up 2% week-on-week, closing at 108,053.95 points from 105,891.33 at the beginning of the week.
• Market Capitalisation: Grew from N66.07 trillion to N67.42 trillion, marking a significant increase of N1.35 trillion.
• Year-to-Date (YTD) Return: Climbed to 4.98% as investors responded positively to corporate earnings reports.
Earnings-Driven Gains
Strong financial performance across multiple sectors played a vital role in the market’s bullish momentum:
• Presco Plc: Stock price soared by 19.8% following strong earnings results.
• FBN Holdings: Recorded a 10.2% price increase.
• MTN Nigeria: Stock price gained 2%, contributing to overall market confidence.
These positive earnings fueled higher trading volumes, particularly in the financial services sector, which accounted for 74.08% of total equity turnover.
Sectoral Performance: Mixed Reactions ⚖️
The market saw a mixed performance across sectors, with three sectors closing positive and three recording losses:
Top Gainers:
• NGX-Industrial Index: +10.4% (Driven by Dangote Cement, Beta Glass)
• NGX-Insurance Index: +2.52% (Boosted by SUNU Assurance, Custodian)
• NGX-Commodity Index: +0.43% (Led by Presco, Transcorp Power)
Top Losers:
• NGX-Consumer Goods Index: -3.63% (Impacted by BUA Foods, Julius Berger)
• NGX-Oil & Gas Index: -2.3% (Affected by Aradel Holdings, Conoil)
• NGX-Banking Index: -0.24% (Weighed down by Zenith Bank, FBN Holdings)
Selloffs in key stocks contributed to declines in some sectors as investors engaged in portfolio rebalancing.
Top Performing Stocks for the Week ⭐
• Honeywell Flour: +47.1%
• UPDC: +45.9%
• VFD Group: +30.6%
• SUNU Assurance: +27.9%
• Ikeja Hotel: +24.4%
Market Outlook: What’s Next?
Analysts anticipate a mixed market sentiment in the coming week as investors await:
✅ Further corporate earnings reports
✅ Dividend declarations
✅ The Consumer Price Index (CPI) data
✅ Monetary Policy Committee (MPC) decisions
According to Cowry Asset Management, these key events will shape investment decisions in the short term. Meanwhile, Cordros Capital projects that January inflation figures and CBN’s policy stance will significantly influence investor behavior.
Final Thoughts: Investor Strategy
As market conditions fluctuate, experts advise investors to:
✔️ Focus on fundamentally strong stocks
✔️ Monitor earnings releases for potential buy opportunities
✔️ Stay informed on economic policy updates
With the bullish sentiment still strong, investors should position themselves strategically to capitalize on emerging opportunities in the Nigerian stock market.
The Nigerian equities market maintained its bullish trend for the second consecutive week in February, recording a N1.35 trillion surge in market capitalisation. This impressive growth was fueled by strong corporate earnings, increased investor confidence, and sectoral performances.
Market Performance: Key Highlights
• All-Share Index (ASI): Up 2% week-on-week, closing at 108,053.95 points from 105,891.33 at the beginning of the week.
• Market Capitalisation: Grew from N66.07 trillion to N67.42 trillion, marking a significant increase of N1.35 trillion.
• Year-to-Date (YTD) Return: Climbed to 4.98% as investors responded positively to corporate earnings reports.
Earnings-Driven Gains
Strong financial performance across multiple sectors played a vital role in the market’s bullish momentum:
• Presco Plc: Stock price soared by 19.8% following strong earnings results.
• FBN Holdings: Recorded a 10.2% price increase.
• MTN Nigeria: Stock price gained 2%, contributing to overall market confidence.
These positive earnings fueled higher trading volumes, particularly in the financial services sector, which accounted for 74.08% of total equity turnover.
Sectoral Performance: Mixed Reactions ⚖️
The market saw a mixed performance across sectors, with three sectors closing positive and three recording losses:
Top Gainers:
• NGX-Industrial Index: +10.4% (Driven by Dangote Cement, Beta Glass)
• NGX-Insurance Index: +2.52% (Boosted by SUNU Assurance, Custodian)
• NGX-Commodity Index: +0.43% (Led by Presco, Transcorp Power)
Top Losers:
• NGX-Consumer Goods Index: -3.63% (Impacted by BUA Foods, Julius Berger)
• NGX-Oil & Gas Index: -2.3% (Affected by Aradel Holdings, Conoil)
• NGX-Banking Index: -0.24% (Weighed down by Zenith Bank, FBN Holdings)
Selloffs in key stocks contributed to declines in some sectors as investors engaged in portfolio rebalancing.
Top Performing Stocks for the Week ⭐
• Honeywell Flour: +47.1%
• UPDC: +45.9%
• VFD Group: +30.6%
• SUNU Assurance: +27.9%
• Ikeja Hotel: +24.4%
Market Outlook: What’s Next?
Analysts anticipate a mixed market sentiment in the coming week as investors await:
✅ Further corporate earnings reports
✅ Dividend declarations
✅ The Consumer Price Index (CPI) data
✅ Monetary Policy Committee (MPC) decisions
According to Cowry Asset Management, these key events will shape investment decisions in the short term. Meanwhile, Cordros Capital projects that January inflation figures and CBN’s policy stance will significantly influence investor behavior.
Final Thoughts: Investor Strategy
As market conditions fluctuate, experts advise investors to:
✔️ Focus on fundamentally strong stocks
✔️ Monitor earnings releases for potential buy opportunities
✔️ Stay informed on economic policy updates
With the bullish sentiment still strong, investors should position themselves strategically to capitalize on emerging opportunities in the Nigerian stock market.