Investors reap N8.1trn as NGX records highest W/W gain

By Peter Egwuatu 

The Nigerian equities market extended its bullish run, Week on Week,W/W, as sustained demand across key sectors lifted the benchmark index further into record territory amid rise in global oil prices. 

The market recorded the highest W/W gain, as investors gained over N8.137 trillion from their investment listed on the Nigerian Exchange Limited, NGX. 

A review of the market performance last week showed that the NGX market capitalisation, which represents the value of equities, rose significantly to record the highest this year at N126.164 trillion from N117.027 trillion the previous week.

In the same vein, another stock market performance indicator, NGX All Share Index, ASI climbed higher by 6.95% to close last Friday at 194,989.77 points from 182,313.08 points the previous week

Analysts noted that this reflects growing investor confidence, underpinned by selective institutional accumulation and renewed positioning in fundamentally strong counters.

Meanwhile,  in the broader macro environment, global oil prices provided additional sentiment support. Brent crude traded above $71 per barrel, while WTI hovered near $66, amid renewed geopolitical tension in the Middle East. 

Analysts noted that heightened concerns about potential supply disruptions around the Strait of Hormuz sustained the geopolitical risk premium in oil markets. For Nigeria, firm oil prices remain a key positive factor, supporting fiscal stability expectations and enhancing foreign investor sentiment toward the domestic equity market.

Further analysis of trading revealed that market participation also improved with total trading volume and value increasing by 148.4% W/W and 87.1% W/W respectively. 

Sectoral performance was broadly in line with the overall market sentiment, as the Industrial Goods Index rose by 10.1%, Oil & Gas Index 8.7%, Consumer Goods Index 6.1%, Banking Index 5.7% and Insurance Index 4.7%.

In the projection for this week, analysts at Cordros Capital, stated: “ This week market sentiment will likely be shaped by audited earnings releases and dividend declarations across key sectors including Cement, Telcos, Oil & Gas, and Consumer Goods. Market participants will also monitor the CBN’s MPC meeting, where we expect the CBN to reduce the policy rate by 50bps to 26.5%.”

Commenting on the outlook, analysts at InvestData Consulting Limited said: “Looking ahead, the market bias remains constructive in the near to medium term. Sustained institutional positioning, improving oil price dynamics, and earnings expectations could continue to provide upside catalysts. However, investors are advised to monitor liquidity trends and sector rotation patterns closely.

“Short-term volatility may arise from profit-taking in recently rallied stocks, but pullbacks could offer attractive re-entry opportunities in fundamentally sound counters. As long as the ASI sustains above the 190,000 support level, the broader bullish outlook remains intact.”

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