Emmanuel Ochayi
In a week that saw financial markets oscillate, Nigeria’s trading landscape concluded on a triumphant note as investors celebrated a collective gain of N1.12tn.
Despite grappling with two days of bearish trends causing a combined loss of N1.93bn, the Nigerian Exchange All-Share Index and market capitalisation rose by 1.97% and 2%, closing the week at 104,421.23 and N57.16tn, respectively.
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The driving force behind this upward trajectory was the early release of annual reports by companies, triggering heightened trading volumes and a predominantly positive market breadth.
Notably, the banking sector emerged as a stronghold, propelling the market past the 104,000 thresholds and contributing to a year-to-date return of 39.7%.
However, the sectoral performance for the week presented a nuanced picture, with three out of five sectors witnessing declines. Banking and insurance indexes faced setbacks of 4.52% and 4.07%, respectively, attributed to price drops in major players such as Guaranty Trust Bank, Zenith Bank, Royal Exchange, and NEM Insurance. The Oil & Gas index also experienced a 2.47% dip due to sentiment in Eterna.
On a brighter note, the Industrial index celebrated a 6.36% week-on-week gain, fueled by increased prices and buying interest in Dangote Cement and BUA Cement. The Consumer Goods Index also ended positively, rising by 1.30%, driven by upward price movements in Meyer Plc and McNichols.
The week witnessed robust trading activity, with investors exchanging 3.893 billion units of shares worth N95.15bn in 69,117 deals, reflecting an uptick from the previous week. The financial services industry led the charge, contributing 67.81% to the total equity turnover volume, followed by the oil and gas industry and conglomerates industry.
Notable equities during the week included FBN Holdings Plc, where Femi Otedola assumed the chairman’s role, along with Transnational Corporation Plc and United Bank for Africa Plc, collectively accounting for a significant portion of the total equity turnover volume and value.
In summary, the week’s financial landscape showcased resilience amid fluctuations, driven by positive investor sentiment surrounding annual reports and notable performances in key sectors.
