Market analysts observed a surge in buying activities across various sectors, leading to a positive market sentiment. Consequently, investors witnessed a substantial increase of over ₦835 billion, propelling the NGX market capitalization to ₦60.26 trillion, a significant rise from the previous week’s ₦59.425 trillion.
Additionally, the NGX All Share Index (ASI), a crucial indicator of stock market performance, climbed by 1.4%, closing at 99,448.91 points, up from 98,070.28 points the previous week.
The market experienced positive performance throughout all five trading sessions, fueled by robust demand for stocks such as Seplat, which rose by 9.25% week-on-week (WoW), FBN Holdings at 10.58% WoW, and UBA at 18.50% WoW.
Conversely, there were sell-offs in MTN Nigeria, which declined by 3.66% WoW, and Dangote Sugar, which fell by 10.13% WoW.
Analysts observed a resurgence of confidence as the corporate earnings released thus far exceeded expectations, contributing to a positive trend for the fourth consecutive session and surpassing the significant 99,000 mark.
Companies such as Airtel Africa, CAP, UPDC, Guinness Nigeria, and Ikeja Hotel reported their quarterly earnings during this period, revealing a mix of results in their financial performance.
Analysts at InvestData Consulting stated: “At the current markup phase on the NGX, discerning investors are repositioning their portfolios along sectors and companies with potentials to release positive numbers on the strength of their earnings power ahead of their September quarterly earnings reports.”
In terms of market outlook, analysts anticipate a continuation of positive sentiment and mixed trends. This is due to profit-taking and positioning ahead of the release of additional Q3 earnings reports. Furthermore, sector rotation and portfolio rebalancing are ongoing within the market, with investors capitalizing on pullbacks to acquire value.
This occurs amidst volatility and pullbacks, which contribute to the upside potential. Consequently, investors are advised to take advantage of price corrections. Additionally, we closely monitor global and domestic trends and events.