The Nigerian equities market recorded another remarkable performance last week, climbing to fresh record levels amid strong bullish sentiment across key sectors.
The rally was largely propelled by renewed investor interest in Insurance, Industrial, and Consumer Goods stocks, following the official signing of the Nigerian Insurance Act into law.
This development served as a significant market catalyst, enabling market players to reassess their holdings and adjust their portfolios in line with evolving sector dynamics and macroeconomic indicators.
As a result, the benchmark NGX All-Share Index advanced by 3.18% week-on-week to close at 145,754.91 points, having touched a fresh high of 146,570.71 points during the week. Correspondingly, market capitalisation surged by N2.84 trillion to reach N92.21 trillion, bringing the year-to-date return to an impressive 41.61%.
Investor sentiment remained largely positive throughout the week, as reflected in the market breadth which showed 66 gainers against 41 decliners.
Market activity was somewhat mixed. The total volume of transactions recorded a significant spike of 79.8% week-on- week to 8.72 billion units, suggesting increased retail and institutional participation in key tickers.
However, total market value traded declined by 10.5% to N134.04 billion, which may indicate a shift in focus towards lower-priced or mid-cap stocks. The number of deals executed rose modestly by 3.24% to 179,908 compared to the previous week.
Sectoral performance was broadly positive, with four of the six sectors under coverage closing the week in the green. The Insurance sector emerged as the top performer, surging by an eye-catching 41% week-on-week.
This rally was driven by investor optimism surrounding the sector’s growth prospects following the enactment of the new Insurance Act, which has sparked expectations of recapitalisation and regulatory reforms.
Stocks such as Mutual Benefits Assurance, AIICO Insurance, ROYALEX, SOVRENINS, and CORNERSTONE were at the forefront of the rally, each posting weekly gains above 50%.
The Industrial Goods sector also performed strongly, appreciating by 8.73% on the back of gains in large-cap stocks such as Dangote Cement and BUA Cement.
The Consumer Goods index followed closely, rising by 8.27% week-on-week, largely supported by upward movements in stocks like BUA Foods, GUINNESS, and ELLAH LAKES.
The Oil & Gas sector posted a modest 0.17% gain, with support from counters such as OANDO and JAPAULGOLD.
In contrast, the Commodities and Banking sectors came under pressure, declining by 2.33% and 0.75% respectively.
The losses in these sectors were driven by sell-offs in names like TOTAL, PRESCO, ZENITHBANK, FIDELITYBANK, and ACCESSCORP, suggesting some investors are taking profits.
At the close of the week, top performers included Mutual Benefits Assurance with a 60.4% increase, AIICO Insurance with a 59.8% rise, ROYALEX gaining 59.3%, SOVRENINS up by 59.1%, and CORNERSTONE appreciating by 54.5%.
On the flip side, the worst-performing stocks were LIVINGTRUST which declined by 24.1%, ACADEMY down by 18.2%, TIP shedding 12.7%, UPDCREIT dropping 11.8%, and LEGENDINT falling by 11.7%.
Looking ahead to the coming week, market analysts anticipate a mixed performance in the equities market as bulls and bears continue to contest market direction.
However, they note that the prevailing sentiment remains broadly optimistic, with investors likely to sustain their focus on fundamentally strong sectors, particularly Insurance, Consumer Goods, and select Industrial tickers.
The market is also expected to witness further portfolio rotations as investors reposition based on evolving sectoral opportunities, corporate earnings expectations, and macroeconomic cues.
The Insurance sector in particular is expected to remain in focus, given its reform-driven outlook and recent price momentum.
