Record Gains: Investors Bag N1trn in Only 5 Days
The benchmark Nigerian Exchange Limited, NGX, All Share Index, ASI, Year-to-Date, YtD, capital gain of 35.2% last week, beating the runaway inflation rate in the nation, which stood at 34.6% in November.
The NGX ASI recorded the highest weekly gain since 15 March 2024 as rally in blue chip companies lifted the market performance closing on Friday at 101,129.09 points from 99,378.06 points at previous week.
(PC: Pincrest)
Furthermore, the rally in ARADEL caused a bounce in price of 20.73% Week on Week, W/W , GTCO 7.65% and Zenith Bank 4.20% while BUA Cement was down by 2.11%, MTN Nigeria 0.28% and ACCESSCORP 0.62%.
Meanwhile, more than N1.062 trillion benefit was earned by investors last week as market capitalisation, which is the total value of investment on the Exchange, closed at N61.303 trillion from N60.241 trillion the previous week.
The bull run and recovery on the NGX increased, according to analysts, increased on buying interests across the major sectors of the market, especially with the positive sentiments on consumers goods giants like Honeywell flour mills, Nigeria breweries, Nestle and others.
According to analysts, the trend observed by the NGX’s index was positive, implying a strong cash flow supporting bullish trend, as players were taking last-minute positions ahead of Christmas day with increasing number of companies hitting a new 52-week high.
As end of year positioning continued on the back of cross deals and others in the market, MTNN and Fidelity Bank notified the trading public of the closure of their premised periods for the 2024 financial year during the week under review, while Aradel Holdings informed the market of ministerial consent on acquisition of SPDC limited. Similarly, Seplat Energies and Cutix also informed the market on insiders’ dealings.
When commenting on the outlook for the market, Analysts at InvestData Consulting said this: “We expect positive sentiment amidst profit taking owing to bargain hunting, while rebalancing portfolios against a backdrop of high inflation, low valuations and position taking by smart money for year-end”.
There have been sector rotation and portfolio rebalancing with investors taking advantage of pullbacks and correction to add to the investment in value.
This is in line with the volatility and pullbacks that only strengthen the upside potential at the end of correction movement. Thus, investors should look to take advantage of this price correction along with looking at the trends and events from around the world and domestically.
Join Our Social Media Channels:
WhatsApp: NaijaEyes
Facebook: NaijaEyes
Twitter: NaijaEyes
Instagram: NaijaEyes
TikTok: NaijaEyes
