Over ₦500 Billion Gained in 3 Days! Investors Defy Holidays, Stay Bullish

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Olori Uwem

Well-Known Member
Mar 18, 2024
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Over ₦500 Billion Gained in 3 Days! Investors Defy Holidays, Stay Bullish

Despite just three trading days last week due to two national public holidays (Monday and Thursday), investors gained over ₦500 billion on the Nigerian Exchange (NGX), showcasing the market’s resilience and attractiveness.

Quick Snapshot of the Week:
• All-Share Index (ASI): +0.71% → Closed at 115,429.54 points (a record high!)
• Market Capitalisation: Rose by ₦512.52 billion → now at ₦72.79 trillion
• Year-to-Date Return: Up to 12.15%
• Market Breadth: 55 gainers vs 39 losers (positive breadth of 1.41x)

This performance, despite the short week, reinforces investor confidence in equities, especially when compared to the lower yields in the money and fixed-income markets.

Trading Activity – A Bit Slower, But Deals Went Up
• Volume of Trades: -35.77%
• Value of Trades: -32.31%
• Number of Deals: +1.47% → Increased interest in small- and mid-cap stocks

Insight: Investors were cautious with volume but active in bargain hunting, especially with many repositioning ahead of key economic updates.

Sector Watch – Mixed Signals

Losers:
• Oil & Gas: -1.22% (Sell-offs in Conoil & Aradel)
• Insurance: -0.11% (Dragged by Wapic & Cornerstone)
• Commodities: -1.41% (Decline in agri stocks)

Gainers:
• Consumer Goods & Industrials: Boosted by Berger Paints, Ella Lakes, May & Baker, Honeywell Flour, Dangote Sugar
• Industrial Index: Strong support from BUA Cement
• Banking Sector: Ended flat—Tier-1 losses balanced Tier-2 gains

Analyst Outlook – Eyes on Inflation, But Sentiment Stays Positive

According to Cowry Asset Management:

“The market is likely to remain mildly bullish this week, especially if the May inflation data comes in better than expected.”

They advise:
✅ Stick with quality stocks
⚠️ Expect some profit-taking as investors reassess current valuations

Cordros Capital added:
• Oil exports may face pressure due to softer global prices
• But domestic crude production is rebounding
• Local refining capacity will reduce imports
• Rising consumer demand + better FX liquidity may increase non-oil imports

Final Word:

The Nigerian stock market is holding up strongly—even in a short week—and shows continued potential for savvy investors who focus on fundamentals.

So while the holidays slowed everything else down, the bulls still found a way to charge through!