The stock market sustained a positive trend Week on Week, W/W, as investors gained over N4.08 trillion in 5 trading days last week.

Specifically, the Nigerian Exchange Limited, NGX, market capitalisation, which represents the total value of listed equities, rose to N110.234 trillion from N106.153 trillion in the penultimate week.

Similarly, another stock market performance indicator, NGX All Share Index, ASI rose by 3.8% to 171.727.49 points from 165,370.40 points, showing positive movement of equities prices on the Exchange.

Analysts noted that the NGX ASI continues to post higher highs and higher lows, supported by rising turnover, which confirms the strength behind the current rally. Momentum indicators remain in positive territory, suggesting that the bulls retain control in the near term. However, given the sharp price appreciation recorded in some large-cap stocks, periods of consolidation or mild pullbacks may occur as short-term traders lock in profits.

Analysis of trading last week showed that risk on sentiment dominated the domestic stock market, supported by positive reactions to corporate earnings releases and select company specific developments.

The market was propelled by gains recorded by MTN, which went up by 8.4%, Dangote Cement 7.1%, Seplat 10.0%, WAPCO 6.4% and Stanbic IBTC 8.5% to drive the NGX ASI upward and bringing the Year-to-Date, YtD returns to 10.4%.

Market activity also strengthened, with total trading volume and value rising by 53.5% W/W and 98.3% W/W respectively. Sector performance was broadly positive, as the Oil & Gas Index gained 10.9%, Industrial Goods Index 4.4%, Banking Index 3.6% and Consumer Goods Index 1.0% , while the Insurance Index dropped by -2.3%.

Commenting on market outlook, analysts at Cordros Capital said: “Looking ahead, we expect trading activity to remain somewhat choppy, driven by continued positioning in market bellwethers, alongside bouts of profit taking as recent gains are digested.”

In their own reactions, analysts at InvestData Consulting Limited, stated: “Looking ahead, investor focus is expected to remain on corporate earnings releases, macroeconomic data, and developments in the global oil market. With sentiment still skewed to the upside, the market may continue to attract fresh inflows, particularly into fundamentally strong names. Nonetheless, selective profit-taking and sector rotation are likely, suggesting that investors should remain disciplined and focus on stocks with strong fundamentals.”