Investor confidence surged on the Nigerian Exchange Limited (NGX) last week, fueled by easing inflation and strong first-quarter corporate results. The all-share index (ASI) rose 0.9%, closing at 109,710.37 points, while market capitalization expanded by N613.99 billion to N68.95 trillion — marking a robust 6.59% return year-to-date.
This positive momentum is attributed to the dip in April inflation to 23.71%, which has lifted sentiment ahead of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee meeting scheduled for May 19–20. Investors are optimistic about potential policy shifts that could further stimulate economic growth.
Sector Performance Highlights:
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Consumer Goods: Led the gains with a 4.08% rise, supported by strong buying in Champion, NNFM, May & Baker, and Honeywell Flourmills.
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Insurance: Advanced 2.47%.
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Banking: Increased by 1.19%.
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Oil & Gas: Gained 0.66%.
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Industrial & Commodity Sectors: Posted modest increases of 0.13% and 0.14%, respectively.
Despite the upbeat market, trading activity was relatively subdued:
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Volume of shares traded fell by 1.66% to 2.6 billion units.
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Total value of trades dropped 17.32% to N63.66 billion.
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Number of deals declined by 10.15% to 77,370.
Market breadth remained strong with 61 stocks advancing versus 31 declining.
Expert Insights:
Ambrose Omordion, Chief Research Officer at Investdata Consulting, noted the market is likely to see mixed sentiments as investors adjust portfolios and await corporate earnings and dividend announcements. He encouraged investors to seize the current window to acquire fundamentally strong stocks at attractive valuations.
Cowry Asset Management echoed this optimism, anticipating continued bullish momentum driven by expectations of a possible CBN interest rate cut and favorable macroeconomic conditions. They recommend focusing on stocks with strong fundamentals and resilient earnings to navigate potential market volatility.
Top Trading Stocks:
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FCMB Group Plc
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Access Holdings Plc
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Tantalizer Plc
These three accounted for nearly a quarter of total trading volume and value last week.
