Stock Market Update: Bullish Momentum Amid Portfolio Rebalancing ✨
The Nigerian stock market maintained its upward trend last week, buoyed by increased domestic and foreign investor inflows. The rally, ahead of the January effect—a period historically marked by positive performance—was driven by strategic portfolio repositioning across key sectors.
Key Highlights of the Week:
1. Strong Performers:
• MTN Nigeria: +3.5%
• Oando: +9.5%
• Conoil: +33.5%
These gains helped the NGX All Share Index (ASI) rise by 1,000 points, closing at 99,210.75 (+1% W/W).
2. Corporate Updates:
• Seplat completed the acquisition of MPNU.
• Accesscorp signed an agreement to acquire 100% of South Africa’s Bidvest Bank.
• Earnings forecasts were released by Trans-Nationwide Express, NEM Insurance, and Custodian Investment Plc.
• United Capital (UCAP) disclosed insider trading activities.
3. Sectoral Performance:
• Oil & Gas Index: +7.6%
• Insurance Index: +5.5%
• Consumer Goods Index: +1.0%
• Banking Index: +0.2%
• Industrial Goods Index: -0.6% (sole loser).
4. Returns:
• Month-to-Date (MTD): +1.9%
• Year-to-Date (YTD): +32.9%
Market Insights :
• Activity Levels: Trading volumes and values dipped significantly (30.1% and 43.4%, respectively).
• Volatility: Analysts forecast continued volatility amid profit-taking, portfolio rebalancing, and sector rotation.
Analysts’ Commentary:
• Cordros Capital: Expect choppy trading with a bullish bias as investors focus on fundamentally strong stocks.
• InvestData Consulting: Highlighted opportunities in low valuations and price corrections, urging investors to take advantage of pullbacks.
This robust activity and strategic repositioning indicate confidence in the market heading into 2025. Investors are encouraged to remain vigilant while capitalizing on value-driven opportunities.
The Nigerian stock market maintained its upward trend last week, buoyed by increased domestic and foreign investor inflows. The rally, ahead of the January effect—a period historically marked by positive performance—was driven by strategic portfolio repositioning across key sectors.
Key Highlights of the Week:
1. Strong Performers:
• MTN Nigeria: +3.5%
• Oando: +9.5%
• Conoil: +33.5%
These gains helped the NGX All Share Index (ASI) rise by 1,000 points, closing at 99,210.75 (+1% W/W).
2. Corporate Updates:
• Seplat completed the acquisition of MPNU.
• Accesscorp signed an agreement to acquire 100% of South Africa’s Bidvest Bank.
• Earnings forecasts were released by Trans-Nationwide Express, NEM Insurance, and Custodian Investment Plc.
• United Capital (UCAP) disclosed insider trading activities.
3. Sectoral Performance:
• Oil & Gas Index: +7.6%
• Insurance Index: +5.5%
• Consumer Goods Index: +1.0%
• Banking Index: +0.2%
• Industrial Goods Index: -0.6% (sole loser).
4. Returns:
• Month-to-Date (MTD): +1.9%
• Year-to-Date (YTD): +32.9%
Market Insights :
• Activity Levels: Trading volumes and values dipped significantly (30.1% and 43.4%, respectively).
• Volatility: Analysts forecast continued volatility amid profit-taking, portfolio rebalancing, and sector rotation.
Analysts’ Commentary:
• Cordros Capital: Expect choppy trading with a bullish bias as investors focus on fundamentally strong stocks.
• InvestData Consulting: Highlighted opportunities in low valuations and price corrections, urging investors to take advantage of pullbacks.
This robust activity and strategic repositioning indicate confidence in the market heading into 2025. Investors are encouraged to remain vigilant while capitalizing on value-driven opportunities.