Kayode Tokede 

The Nigerian stock market gained N216 billion to end last week on a positive note, as late-session gains on the final two trading days offset the weak outturns in the earlier part of trading activities. 

Investor sentiment was buoyed by the Monetary Policy Committee’s (MPC’s) first rate cut in five years to 27 per cent, which drove renewed interest in fundamental stocks such as Zenith Bank Plc, Stanbic IBTC Holding Plc, among others.

The Nigerian Exchange Limited  All-Share Index (NGX ASI) advanced by 0.20 per cent week-on-week to close at 142,133.02 basis points. Similarly, market capitalization gained N216 billion to close the week at N89.960 trillion.

Meanwhile, sectoral performance was mixed, as the NGX Industrial Goods Index gained 1.3per cent, NGX Consumer Goods Index appreciated by 1.2 per cent, and NGX Banking Index advanced by 1.2per cent, while the NGX Insurance index down by0.9 per cent and NGX Oil & Gas Index dipped by 1.6per cent.  retreated.

Market analysts stated that “this performance underscores the resilience of the market, which has remained firmly positive despite macroeconomic headwinds.

“The year-to-date return strengthened further to 38.09 per cent, reflecting investor confidence underpinned by improved liquidity in the FX market, rising oil prices, and optimism around Q3 corporate earnings season beginning next month.

“Portfolio rebalancing also continued in earnest, supported by the Monetary Policy Committee’s recent 50bps cut in the MPR to 27.00 per cent and Nigeria’s stronger-than-expected Q2 GDP growth of 4.23 per cent.”

On this, the market breadth closed negative, with 32 gainers against 51 decliners. Thomas Wyatt Nigeria led the gainers table by 22.68 per cent to close at N3.30, per share. Secure Electronic Technology followed with a gain of 21.33 per cent to close at 91 kobo, while MeCure Industries went up by 20.83 per cent to close to N26.10, per share.

On the other side, Wema Bank led the decliners table by 12.41 per cent to close at N18.00, per share. Fidelity Bank followed with a loss of 11.08 per cent to close at N18.45, while Eterna declined by 10.00 per cent to close at N27.90, per share.

Overall, a total turnover 7.684 billion shares worth N494.126 billion in 116,645 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 2.735 billion shares valued at N85.197 billion that exchanged hands previous week in 127,284 deals.

Looking into this week, Cowry Assets Management Limited said, “the equities market is expected to retain a cautiously bullish tone, supported by attractive valuations, improving FX liquidity, and firmer oil prices, all of which should provide additional buffers for investor sentiment.

“The upcoming Q3 earnings season is set to play a decisive role, particularly in banking and consumer names, with expectations of stronger results helping to sustain momentum. Nonetheless, weak market breadth and persistent profit-taking may keep sentiment selective, ensuring that fundamentally strong stocks remain the most attractive plays in the near term.”

This week, Afrinvest Limited anticipated a mixed performance with a mild bullish bias as the recent CBN rate cut may continue to encourage selective rotation into equities, adding that “nevertheless, the scheduled FGN bond auction, offering attractive medium-term yields, could temper sentiment by diverting liquidity toward the fixed income market.”

Cordros Research added that, “Looking ahead, we expect sentiment to improve further, supported by the more accommodative interest rate environment and the prospect of increased liquidity flows into equities.”