By Bamidele Famoofo
Investors are adopting more cautious approach to investment as the Nigerian equities market ended the week on a positive note, with gains in a few key stocks helping to lift overall performance.
The benchmark NGX All-Share Index (ASI) edged up by 0.39 percent week-on-week to close at 201,698.89 points on the back of positive sentiments following the publications of audited financial scorecards or corporates and the kickstart of the earning season.
Market capitalisation also increased by 0.65 percent to N129.81 trillion, mainly driven by the additional listing of 21.183 billion ordinary shares from FCMB and 5.07 billion ordinary shares from VFD Group. This represents a gain of about N837 billion from the N128.96 trillion recorded in market cap in the previous week. Consequently, the year-to-date return improved to 29.62 percent, reflecting sustained positive momentum in the market.
However, market breadth was negative at 0.51x, as 29 stocks gained while 57 declined indicating that despite the overall market growth, more stocks actually recorded losses during the week and weak breadth. Also, trading activity slowed down compared to the previous week as the number of deals, trading volume, and total value traded fell by 40.10 percent, 27.72 percent, and 43.59 percent week-on-week, respectively. In total, investors traded 2.86 billion shares worth N113.76 billion across 216,067 deals, pointing to weaker market participation.
On the sectoral front, performance was largely mixed, reflecting a market driven by selective positioning rather than broad-based momentum.
The banking, oil & gas, and commodities indices recorded marginal gains of 0.71 percent, 0.02 percent, and 0.01 percent respectively, supported by targeted buying interest in stocks such as GTCO, ETERNA, JAPAULGOLD, ZICHIS, and FCMB.
This suggests that investors remain willing to take positions in fundamentally sound or opportunistic names, even within a cautious market environment.
On the downside, the insurance, consumer goods, and industrial indices declined by 4.25 percent, 1.74 percent, and 0.24 percent to respectively, largely driven by profit-taking activities in stocks including MAYBAKER, LEGEND INTERNET, CONSOLIDATED HALLMARK, FTG INSURANCE, JOHNHOLT, HONEYWELL, LAFARGE, NIGERIAN BREWERIES, CUSTODIAN, and RTBRISCOE and points to waning investor appetite following recent price rallies, as market participants continue to rebalance portfolios and lock in gains where necessary.
On the gainers’ chart, Multiverse led with a 20.7 percent increase, followed by UPDC REIT (+15.5%), INTENEGINS (+12.5%), AUSTINLAZ (+10.5%), and Unilever (+10.0%), largely driven by buying interest. Conversely, NSLTECH (-21.5%), JOHNHOLT (-18.5%), MAYBAKER (-16.6%), ALEX (-16.3%), and LEGENDINT (-16.0%) topped the losers’ list, reflecting profit-taking and sustained selling pressure.
Looking ahead into the coming week, the market is expected to trade with a mildly positive but cautious bias in the near term, as investors continue to rotate into fundamentally strong and liquid names. While the recent uptick in the index reflects resilience, the weak market breadth and softer trading activity highlight a lack of broad conviction, suggesting that the rally remains narrowly driven.
As corporates publish their audited FY 2025 numbers and heading into the start of the dividend earning season, we anticipate the mildly upbeat sentiments in some tickers on the back of attractive dividend yields and positive internals.
We anticipate the market to remain range-bound with pockets of opportunities, as investors adopt a more selective and defensive approach in the absence of strong, market-wide catalysts.
Meanwhile, we continue to advise investors to take position in fundamnetally sound stocks.
