The Nigerian stock market maintained its strong bullish momentum last week as investors recorded a massive N3.34 trillion gain driven by sustained buying interest in banking, consumer goods, and selected industrial stocks.
The positive performance on the Nigerian Exce strengthened investor confidence as both institutional and retail investors continued to reposition their portfolios ahead of anticipated stronger corporate earnings and dividend expectations in the second half of the year.
Market sentiment remained largely optimistic throughout the week with investors increasing positions in highly capitalised and fundamentally strong companies, especially within the banking sector where demand stayed strong despite pockets of profit taking in some segments of the market.
Analysis of trading activities showed that the market capitalisation of listed equities rose to N160.443 trillion from N157.094 trillion recorded in the previous week. Similarly, the NGX All Share Index advanced by 2.3 percent week on week to close at 250330.92 points from 244775.83 points.
The development pushed the Month to Date return to 3.3 percent while the Year to Date return climbed to an impressive 60.9 percent.
Trading activity also improved significantly as total volume traded increased by 18.4 percent while the total value traded grew by 24.3 percent week on week.
Sectoral performance remained positive across major indices. The Industrial Goods Index gained 4.7 percent, the Banking Index rose by 2.8 percent, the Insurance Index appreciated by 2.7 percent, while the Consumer Goods Index added 1.6 percent. However, the Oil and Gas Index declined by 1.2 percent.
Analysts at Cordros Asset Management projected that the market could remain volatile in the coming sessions as buying interest may be tempered by profit taking activities. Investors are also expected to monitor the outcome of the Monetary Policy Committee meeting scheduled for May 20.
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