The Nigerian capital market recovered last week as investors pocketed N794 billion amid growing global economic uncertainties.
The market capitalisation of listed equities rose from N62.851 trillion on January 17 to N63.645 trillion on January 24.
Similarly, the All-Share Index (ASI) gained 1,244.62 points or 1.2 percent to close the week at 103,598.3 points compared to 102,353.68 points recorded in the previous week.
The positive growth was a result of 6.4 percent surge in MTNN value after the Nigerian Communications Commission approved 50 percent increase in tariff for telecommunications services.
Transcorp Power appreciated by eight percent after releasing robust earnings and declaring dividends.
Trading activity saw substantial improvement with a total of 3.06 billion shares worth N75.2 billion exchanged in 39,764 deals. This represents a 35.7 percent increase in volume and a 27.9 percent rise in value compared to the previous week, where 2.3 billion shares valued at N58.8 billion were traded.
Sectoral performance further showed the week’s recovery with three out of six indexes closing in positive territory.
The NGX Banking Index led with a 4.09 percent gain on strong performances in Fidelity Bank and UBA while the NGX Commodity Index rose by 1.03 percent.
The NGX Industrial Index recorded a marginal 0.1 percent gain spurred by price appreciation in RT Briscoe, CAP Plc, and Transcorp Power.
On the downside, the NGX Insurance Index declined by 1.3 percent due to sell-offs in SUNU Assurances and Cornerstone Insurance.
The NGX Consumer Goods Index dropped by 1.2 percent, affected by losses in Honeywell Flour Mills and Dangote Sugar Refinery while the NGX Oil and Gas Index fell by 0.75 percent.
The financial services industry dominated market activity as accounted for 74.6 percent of total equity turnover volume with 2.3 billion shares worth N33 billion traded in 27,100 deals.
Wema Bank, Secure Electronic Technology, and Access Holdings were the most traded stocks by volume, contributing a combined 45.9 percent of the total turnover with 1.4 billion shares worth N15.4 billion.
Market analysts anticipate that the positive momentum will persist, driven by the ongoing release of corporate earnings and dividend announcements.
Cordros Capital stated that the full-year 2024 earnings season would act as a catalyst for continued buying activities and improved market sentiment.
“While the current low valuation of many stocks presents opportunities for strategic repositioning, bouts of volatility may occur as macroeconomic data and upcoming economic events influence investor sentiment,” the firm noted.