Despite a shortened trading week due to public holidays, the Nigerian equity market closed positively, with the benchmark NGX All-Share Index climbing 0.71% week-on-week to finish at an all-time high of 115,429.54 points.
Though modest, the gain is noteworthy given the subdued trading environment, highlighting prevailing bullish sentiment and investor confidence in anticipated macroeconomic tailwinds.
Market capitalisation advanced in tandem, rising by N512.52 billion to close at N72.79 trillion, bringing the year-to-date return to 12.15%.
This performance reaffirms the equity market’s resilience and relative attractiveness over money market instruments and fixed-income securities.
Market breadth was positive at 1.41x, with 55 gainers against 39 losers, indicating broad-based investor optimism focused on counters with strong fundamentals and recent corporate triggers.
However, trading activity was muted. Total volume and value of shares traded declined by 35.77% and 32.31% respectively, closing at 2.05 billion units valued at N50.68 billion.
Despite the lower turnover, the number of deals edged up by 1.47% to 64,702 transactions, suggesting increased participation in small- and mid-cap stocks as investors tactically repositioned ahead of key economic data releases.
Sectoral performance was mixed, driven by portfolio rebalancing and profit-taking in recent outperformers.
The oil and gas index fell by 1.22%, dragged down by sell-offs in CONOIL and ARADEL as investors rotated out of previously favoured energy stocks.
Similarly, the insurance sector dipped by 0.11%, with losses in WAPIC and CORNERSTONE, while the commodity index dropped 1.41% amid a slowdown in agricultural activity.
Conversely, the consumer goods and industrial goods sectors closed in the green, boosted by gains in BERGER Paints, ELLAHLAKES, MAYBAKER, HONEYFLOUR, and DANGOTE SUGAR.
Notably, BUACEMENT provided key support to the industrial index, reinforcing investor conviction in blue-chip stocks with consistent earnings and strong market leadership.
The banking index ended the week flat, as losses in tier-1 names like ETI, ACCESSCORP, ZENITH Bank, and FBNH offset gains recorded in select tier-2 banks.
The movement reflects investor caution ahead of upcoming inflation data and potential monetary policy adjustments.
In terms of individual stock performance, Legend Internet topped the gainers’ chart with a 32.8% weekly return, followed closely by BERGER Paints (30.7%) and ELLAHLAKES (27.4%). OANDO and Fidson Healthcare also delivered strong double-digit gains, fuelled by positive sentiment and speculative demand.
On the downside, John Holt, IMG, RT Briscoe, NNFM, and CONOIL recorded significant losses as investors locked in profits and rebalanced positions.
Looking ahead, the equity market is expected to retain a mildly bullish tone in the coming week. Analysts said investor attention will be centred on May 2025 inflation figures, which are expected to reflect a deceleration.
According to market experts, a lower-than-expected inflation reading could boost appetite for equities, further diminishing the appeal of fixed-income assets in the short term.
Nonetheless, some profit-taking is likely as investors reassess valuations following recent rallies. They further warned investors in light of relative macroeconomic stability and current price levels, investors to accumulate fundamentally sound stocks with a strong history of earnings and consistent dividend performance.
