The Nigerian stock market last week on a positive note, maintaining its upward momentum as investors reacted positively to third-quarter (Q3) earnings releases, particularly in the banking sector.
The All-Share Index rose by 1.4% week-on-week, closing at 99,448.91 points, buoyed by robust investor interest in key stocks.
Key Drivers of Market Performance
Among the standout performers, SEPLAT Energy Plc saw its shares surge by 9.3% following the Federal Government’s approval of its acquisition of Mobil’s assets.
This announcement has reinvigorated investor confidence in the energy sector. Additionally, significant bargain-hunting was observed in several banking stocks, with UBA climbing by 18.5%, OANDO rising by 16.4%, and FBNH increasing by 10.6%.
The positive week has contributed to improved Month-to-Date (MTD) and Year-to-Date (YTD) returns, now standing at +0.9% and +33.0%, respectively.
Trading Activity and Sector Performance
Trading activity mirrored the broader market trend, with total trading volume and value rising by 48.8% and 16.8% week-on-week. The sectoral performance was predominantly positive, showcasing notable gains across various indices:
- Banking Index: Up 7.9%
- Oil & Gas Index: Up 4.0%
- Insurance Index: Up 4.0%
- Industrial Goods Index: Up 0.1%
The only laggard for the week was the Consumer Goods Index, which experienced a marginal decline of 0.1%.
Outlook for the Market
Market analysts anticipate that the direction of performance will continue to be influenced by the ongoing Q3 earnings season. Investors are expected to engage in selective buying, focusing on fundamentally sound stocks that exhibit strong growth potential.
The anticipation surrounding earnings reports from various sectors is likely to drive further trading activity and investor engagement in the coming weeks.
In summary, the Nigerian stock market’s positive performance this week reflects a mix of favorable earnings news and strategic investor actions, particularly in the banking and energy sectors. As earnings season unfolds, stakeholders are poised to capitalize on emerging opportunities while navigating the market’s dynamics.
