The Nigerian stock market posted a strong recovery last week, with investor portfolio value rising by over ₦986 billion across five trading sessions. The Nigerian Exchange Limited (NGX) All-Share Index (ASI) ended a four-week losing streak, recording gains in four out of five sessions, as investor confidence returned. The ASI rose 1.2% week-on-week (WoW) to close at 140,545.69 points, driven by strategic investments in fundamentally strong stocks offering attractive entry points. Notably, WAPCO surged by 13.3%, Dangote Sugar by 9.1%, Zenith Bank by 4.8%, and UBA by 4.2%, contributing significantly to the market’s overall gain.
The market capitalisation increased from ₦87.936 trillion to ₦88.922 trillion, reflecting renewed interest from both institutional and retail investors. Month-to-date (MtD) and year-to-date (YtD) returns improved to 0.3% and 36.7%, respectively, showing sustained momentum in 2024.
Despite the index rally, trading volume and value fell by 37.7% and 39.5% WoW, respectively, indicating that the rebound was driven more by selective buying of high-cap stocks than by broad market activity.
Performance across sectors was broadly positive:
- Oil & Gas Index: +2.4%
- Insurance Index: +2.4%
- Banking Index: +1.7%
- Industrial Goods Index: +1.1%
- Consumer Goods Index: +1.0%
These gains reflect diversified investor interest across various segments of the economy. According to Cordros Capital, investor sentiment is expected to remain cautious but selectively bullish, with portfolio allocations favoring fundamentally justified equities. Focus is also turning toward the August inflation data, where signs of continued disinflation could support a possible Monetary Policy Committee (MPC) rate cut later this month.
Meanwhile, InvestData Consulting anticipates a mixed market performance in the coming week. As investors await more Q3 earnings reports, bargain hunters are likely to capitalize on price dips, while some may continue profit-taking in large-cap stocks. Future market direction will largely depend on corporate earnings, macroeconomic indicators, and crude oil price movements.
