The Nigerian equities market recorded remarkable performance last week, climbing by N2.843 billion amid strong bullish sentiment across key sectors.
The market gained N3.18 per cent to close the week at N92.214 trillion from N89.372 trillion it opened for the week.
Also the benchmark NGX All-Share Index advanced by 4,491.86 basis points or 3.18 per cent week-on-week to close at 145,754.91 points from 141263.05 points, having touched a fresh high of 146,570.71 points during the week.
The rally was largely propelled by renewed investor interest in Insurance, Industrial, and Consumer Goods stocks, following the official signing of the Nigerian Insurance Act into law.
This development served as a significant market catalyst, enabling market players to reassess their holdings and adjust their portfolios in line with evolving sector dynamics and macroeconomic indicators.
The positive growth trend brought the year to date return to 41.61 per cent as investors sentiment remained largely positive throughout the week as reflected in the market breadth which showed 66 gainers against 41 decliners.
The result also showed that market activity was somewhat mixed. The total volume of transactions recorded a significant rise of 79.8 per cent week-on-week to 8.72 billion units from 4.847 billion shares reported the previous week, suggesting increased retail and institutional participation in key major stocks.
However, total market value traded declined by 10.14 per cent to N134.577 billion against N149.755 billion in the preceding week, which according to operators indicate a shift in focus towards lower-priced or mid-cap stocks.
The number of deals executed rose modestly by 3.24 per cent to 180,290 compared to 170.908 deals traded the previous week.
Analysis of the trading for the week revealed that sectoral performance was broadly positive, with four of the six sectors under coverage closing the week in the green. The Insurance sector emerged as the top performer, rising by 41 per cent week-on-week. This rally was driven by investors’ optimism surrounding the sector’s growth prospect following the enactment of a new insurance act which has sparked expectation of recapitalisation and regulatory reforms.
Capital market operators anticipated that in the coming week, there will be a mixed performance in the equities market as bulls and bears continue to contest market direction. They, however, said that the prevailing sentiment remains broadly optimistic, with investors likely to sustain their focus on fundamentally strong sectors, particularly Insurance, Consumer Goods, and select Industrial tickers.
The market is also expected to witness further portfolio rotations as investors reposition based on evolving sectoral opportunities, corporate earnings expectations, and macroeconomic cues.
The Insurance sector in particular is expected to remain in focus, given its reform-driven outlook and recent price momentum.