Nigerian stock market closed last week on a positive note, driven by high demand for MTN Nigeria shares following the Nigeria Communications Commission, NCC’s approval of a 50.0% tariff hike for telecommunication services and also Transcorp Power, which recorded impressive earnings in its 2024 financial results.
Analysts noted that the market reacted to Transcorp Power, which gained 8.0 % following positive earnings release and dividend payment.
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Consequently, the Nigerian Exchange Limited, NGX All-Share Index (ASI) advanced by 1.2% Week on Week, W/W to close Friday at 103,598.46 points, bringing the Year-to-Date (YtD) return to 0.7%.
Market analysis showed that activity remained vibrant, with trading volume and value increasing by 36.3% W/W and 28.5% W/W, respectively.
Meanwhile, sectoral performance was mixed, as the Banking Index rose by 4.1% and Industrial Goods Index 0.1%, while the Consumer Goods Index declined by -1.2%, Insurance Index -1.2% and Oil & Gas Index -0.9%.
Forty-four (44) equities recorded price appreciation during the week, higher than thirty-three (33) equities in the previous week. Forty-four (44) equities recorded a price decline lower than fifty seven (57) in the previous week, while sixty-four (64) equities remained unchanged, higher than sixty-two (62) recorded in the previous week.
On the gainers side, SCOA Nigeria topped the leaders rising by 59.68% followed by EUNISELL Interlinked Plc, which nosedived by 18.95%, while John Holt declined by 18.47%.
Commenting on market outlook, analysts at Cordros Research stated: “With the commencement of the 2024 full year, FY earnings season, we expect the NGX to be flooded with corporate earnings in the coming weeks as companies publish unaudited 2024 FY numbers with accompanying dividend declarations. We believe this should provide a catalyst for buying activities and improve general market sentiments.
In their own outlook, analysts at InvestData Consulting Limited, stated : “We expect mixed sentiments to continue as players digest corporate numbers and more earnings reports hit the market to reveal value and give insight of dividend expectation, while rebalancing their portfolios amidst high inflation and earnings expectations. Also, sector rotation and portfolio rebalancing continued in the market with investors taking advantage of price correction to buy into value.
This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically”.
