Equity market investors playing in the Nigerian Exchange Limited had N894bn added to their wealth during the past week even as the market hit record highs. The local bourse extended its bullish trend, as the All-Share Index appreciated by 2.26 per cent week-on-week to close at 74,023.27 index points, while the market capitalisation rose to N40.506tn. Analysts have said that the driver of the positive trajectory was the increased demand for financial services and blue-chip stocks, which bolstered the ongoing ‘Santa Claus’ rally as the festive season approached. It is also believed that investors are rebalancing their portfolios ahead of the anticipated 2024 earnings reporting and dividend season. During the week, the equity market not only achieved remarkable highs but also surpassed historical thresholds throughout the week. The market cap crossed the N40tn mark and the ASI broke records on two consecutive days as it crossed 73,000 and 74,000 points respectively on Wednesday and Thursday. The bullish trajectory persisted amid nuanced market sentiments, with select stocks hitting new 52-week highs in the build-up to Christmas. Similarly, all other indices finished higher except for NGX ASeM, NGX Consumer Goods and NGX Growth which depreciated by 0.90 per cent, 0.70 per cent and 0.18 per cent respectively while the NGX Sovereign Bond index closed flat. In the financial services sector comprising Banking and Insurance, their stocks led gainers by 3.35 per cent and 1.70 per cent, respectively. This surge was attributed to price appreciations in banking stocks such as Fidelity Bank, Sterling Financial Holdings, United Bank for Africa, Access Holdings Plc, and FBN Holdings along with insurance firms like NEM Insurance, Axa Mansard and Consolidated Hallmark Holdings. Additionally, the Industrial and Oil & Gas indexes recorded appreciations of 0.33 per cent and 0.09 per cent, driven by a surge in buying interest in equities like Multiverse, Industrial and Medical Gases, WAPCO (Lafarge), Eterna Oil and Oando. The decline in the Consumer Goods index was driven by notable price depreciation in Ellahlakes, Guinness, McNichols, Nigerian Breweries and Nestle. A total turnover of 2.474 billion units of shares worth N53.787bn were traded in 35,848 deals during the past week by investors compared to 1.882 billion shares worth N31.630bn that exchanged hands in the previous week in 33,020 deals. The Financial Services Industry led the activity chart with 1.756 billion shares valued at N24.641bn traded in 17,589 deals; thus contributing 70.95 per cent and 45.81 per cent to the total equity turnover volume and value respectively. The Conglomerates Industry followed with 222.963 million shares worth N1.781 billion in 2,573 deals. The third place was the Services Industry, with a turnover of 93.820 million shares worth N528.510 million in 2,166 deals. The top three traded equities were Abbey Mortgage Bank Plc, Transnational Corporation Plc and Access Holdings Plc. Measured by volume, they accounted for 621.814 million shares worth N6.338bn in 4,235 deals, contributing 25.13 per cent and 11.78 per cent to the total equity turnover volume and value respectively. At the week’s close, top-gaining stocks included Infinity Trust Mortgage Bank, Daar Communication, Multiverse, Transcorp Hotel and Transcorp Plc. They gained 60.64 per cent, 50 per cent, 41.25 per cent, 36.03 per cent, and 26.44 per cent, respectively. On the losers’ chart were Associated Bus Company Plc, Omatek Ventures Plc, ETranZact International Plc, Sovereign Trust Insurance Plc and Thomas Wyatt as their share prices declined on a week-on-week basis, shedding 16.48 per cent, 12.33 per cent, 12.32 per cent, 10.26 per cent and 10.17 per cent respectively. In its weekly results, Cowry Asset Management Limited projected that the positive trend in the market will continue, “As investors are expected to engage in profit-taking and bargain hunting for dividend-paying stocks, driven by sector rotation and portfolio rebalancing. “The market sentiment is expected to be buoyed by high expectations for robust full-year corporate financial results and the attractiveness of high yields, especially in a low-interest-rate environment. The strategic reallocation of funds among sectors and adjustments in portfolios to align with changing market conditions are likely to shape trading activities, reflecting investors’ pursuit of optimal risk-return profiles and capitalizing on emerging opportunities.”
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