The Nigerian equities market ended the week on a positive note as investors increased their positions in key stocks, supported by rising global oil prices and renewed interest in fundamentally strong companies.
Data from the Nigerian Exce Limited showed that the market recorded gains in four out of five trading sessions during the week. This helped push the NGX All Share Index higher by 2.14 percent week on week, closing at 196968.15 points compared with 192826.78 points recorded the previous week.
Market analysts said investors took advantage of recent price corrections to accumulate blue chip and mid cap stocks across several sectors. Bargain hunting was particularly strong in major companies such as Dangote Cement which rose by 4.6 percent, MTN Nigeria which gained 4.0 percent, BUA Cement which increased by 2.7 percent and Aradel Holdings which advanced by 9.1 percent.
Despite the gains in the benchmark index, overall trading activity declined during the week. Trading volume dropped by 32.7 percent while the total value of transactions fell by 31.7 percent compared with the previous week.
Sector performance remained mixed. The Oil and Gas Index recorded the strongest growth with a 9.4 percent increase. The Industrial Goods Index rose by 3.9 percent while the Banking Index gained a modest 0.2 percent. However, the Insurance Index declined by 1.9 percent and the Consumer Goods Index fell slightly by 0.1 percent.
Developments in the global oil market also played a key role in shaping investor sentiment. Benchmark Brent Crude prices climbed to about 84 dollars per barrel while West Texas Intermediate crude traded around 78 dollars per barrel. The surge in oil prices has been linked to escalating geopolitical tensions in the Middle East and disruptions to refinery operations in parts of Asia.
Analysts at Cordros Capital expect cautious trading in the coming week as investors lock in profits from recent market gains while monitoring global developments.
Similarly, analysts at InvestData Consulting Limited noted that rising oil prices could strengthen government revenue and foreign exce inflows for Nigeria due to the country’s heavy reliance on crude oil exports.
They added that stronger oil prices may also boost investor confidence in energy related stocks listed on the Nigerian Exce.
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