The Nigerian Exchange (NGX) rebounded strongly last week, reversing its downward trend with a ₦437 billion gain for investors. The surge was fueled by corporate dividend announcements for the 2024 financial year, alongside quarter-end portfolio rebalancing and window-dressing activities that boosted investor sentiment.

By the end of the week, the NGX All-Share Index (ASI) rose 0.66% to close at 105,660.64 points, while market capitalization increased to ₦66.26 trillion.

Sector Performance: Banking Leads the Rally

The NGX Banking Index emerged as the top-performing sector, gaining 4.28% week-on-week. Stocks such as Guaranty Trust Holding Company, FCMB Group, Fidelity Bank, and First HoldCo saw increased investor demand.

The NGX Insurance Index followed closely, rising 3.21%, while the NGX Consumer Goods and NGX Industrial indices inched up by 0.12% and 0.01%, respectively. Stocks that contributed to these gains included Mutual Benefits Assurance, SUNU Assurance, Champion Brewery, Ikeja Hotel, and UPDC.

Conversely, the NGX Oil/Gas Index declined by 1.65%, and the NGX Commodity Index dropped by 0.76%, while the NGX ASeM index remained flat.

Trading Activity Surges

Market participation was robust, with trading activity experiencing a sharp increase.

• Number of transactions: Up 7.48% week-on-week to 61,309 deals.
• Volume of shares traded: Jumped 159.2% to 7.52 billion units.
• Total value of traded equities: Skyrocketed by 730.04% to ₦398.95 billion.

Most Traded Sectors and Stocks

The Industrial Goods sector led in trading volume, with 4.923 billion shares valued at ₦331.99 billion exchanged in 2,969 deals, contributing 65.46% and 83.22% of total turnover volume and value, respectively.

The Financial Services sector followed, with 2.092 billion shares worth ₦31.74 billion in 32,421 deals.

Among individual stocks, Lafarge Africa Plc, Sovereign Trust Insurance Plc, and Cutix Plc dominated trading, accounting for 5.546 billion shares worth ₦332.38 billion in 1,300 deals—representing 73.73% of total volume and 83.31% of total value.

Worst-Performing Stocks

Despite the bullish trend, some stocks faced steep losses:

• Africa Prudential Plc: -60.45% (worst performer of the week)
• CWG Plc: -11.11%
• John Holt Plc: -10.0%
• UH Real Estate Investment Trust: -9.9%
• United Capital Plc: -9.8%

Outlook: Bullish Sentiment to Continue

Analysts at Cowry Asset Management Limited expect the bullish trend to persist as the earnings season unfolds, with dividend announcements sustaining investor interest in blue-chip stocks.

However, they caution that portfolio rebalancing and profit-taking may introduce some volatility. Investors are advised to focus on fundamentally strong stocks with consistent earnings growth and resilient business models for long-term value creation.

With institutional participation increasing and dividend season in full swing, the Nigerian stock market looks poised for further gains in the coming weeks.