The Nigerian stock market recovered last week as investors’ portfolio value rose by N986 billion over five trading sessions.
The Nigerian Exchange Limited (NGX) All-Share Index gained in four of the five sessions, ending a four-week losing streak. The benchmark index advanced by 1.2 percent to 140,545.69 points, driven by strong performances from WAPCO, which rose 13.3 percent, Zenith Bank 4.8 percent, UBA 4.2 percent, and Dangote Sugar 9.1 percent.
Market capitalization climbed to N88.92 trillion from N87.93 trillion the previous week. Month-to-date and year-to-date returns also improved to 0.3 percent and 36.7 percent, respectively.
Despite the rebound, trading activity slowed as volume and value of trades dropped by 37.7 percent and 39.5 percent, respectively.
Sector performance was broadly positive. The Oil and Gas Index rose by 2.4 percent, Insurance 2.4 percent, Banking 1.7 percent, Industrial Goods 1.1 percent, and Consumer Goods 1 percent.
Analysts at Cordros Capital said investor sentiment will likely remain cautious this week, with flows tilted toward fundamentally strong stocks. They added that the August inflation data could shape expectations ahead of the Monetary Policy Committee’s next meeting.
InvestData Consulting Limited noted that market activity may stay mixed as investors rebalance ahead of third-quarter earnings releases. The firm said bargain hunters will seek opportunities in sound stocks, while profit-taking is expected in some large-cap companies.
Market direction, analysts added, will depend on corporate earnings, macroeconomic indicators, and global crude oil prices.
