The Nigerian equities market witnessed a resurgence in positive sentiment towards the end of the week, primarily fueled by renewed investor interest in banking stocks. Notably, stocks such as FBN Holdings (FBNH) soared by 32.7%, Guaranty Trust Bank (GTCO) by 16.1%, United Bank for Africa (UBA) by 12.1%, and MTN Nigeria (MTNN) by 6.4%. This surge propelled the benchmark index higher by 1.5% week-on-week (w/w) to 99,587.25 points.
Both Month-to-Date and Year-to-Date returns settled at +1.4% and +33.2%, respectively, reflecting the market’s overall positive performance despite a sluggish start to the week. However, trading activity was mixed, with the total trading volume increasing by 5.6% while the total trading value declined by 4.7% w/w.
The Banking index advanced significantly by 9.4%, followed by the Insurance index, which saw a modest increase of 1.0%. Conversely, the Oil and Gas (-0.7%), Industrial Goods (-0.4%), and Consumer Goods (-0.3%) indices experienced declines.
Looking ahead, market analysts anticipate investors to adjust their portfolios based on the assessment of Q1-2024 corporate earnings reports. However, the prospect of higher fixed income yields may dampen buying interests, particularly in the absence of significant positive catalysts.
