Stock market maintains bullish run, defies Christmas sentiment

The Nigeria stock market, last week, maintained bullish run defying the usual Christmas sentiment characterised by sell pressures.

Consequently, investors gained over N894 billion Week-on-Week, WoW, as the Nigerian Exchange Limited, NGX, market capitalisation surged to N40.506 trillion from N39.612 trillion the previous week.

Similarly, another stock market gauge, the NGX All Share Index, ASI, recorded unprecedented mark to hit another new all-time high of 74,289.02 basis points on Thursday after breaking out the 74,000 psychological line to reveal the impact of price appreciation of large cap stocks, positive sentiments and buyers’ conviction in the midst of weak macroeconomic indices and increasing headwinds.

However, on Friday the stock market recorded its first loss of the week under review as sell pressure on MTN led to the reduction on its price by 3.8%, followed by Zenith Bank 1.94%, UBA 1.54%, International Breweries 8.33%, and FCMB 5.19% which impacted negatively on the NGX ASI to close at 74,023.27 points.

Analysis of the week’s activities showed that NGX ASI up 2.3% W/W, as the Month-to-Date, MtD and Year-to-Date, YtD gains declined to +3.7% and +44.4%, respectively.

Meanwhile, the financial services industry (measured by volume) led the activity chart with 1,756 billion shares valued at N24.641 billion traded in 17,589 deals; thus contributing 70.9% and 45.81% to the total stock turnover volume and value respectively. The Conglomerates industry followed with 222.965 million shares valued N1.781 billion in 2573 deals. The third place was Services industry with a turnover of 93.820 million shares worth N528.510 million in 2166 deals.

Commenting on market outlook, Analysts at InvestData Consulting Limited, said: “

We expect positive sentiments and profit taking to continue on bargain hunting for dividend paying stocks ahead of Christmas holidays in the midst of sector rotation and portfolio rebalancing on the strength of the better-than-expected corporate numbers released and high yields. However, we note that 2024 is beginning dividend season ahead.

Meanwhile, all eyes are on the fiscal and monetary authorities to give direction of the government reforms and policies so far.”