Investors in the stock market experienced a notable gain of N2.7 trillion within a single week.

The Nigerian stock market experienced a notable commencement in the initial trading week of 2024, witnessing investors accumulating N2.7 trillion in gains on the Nigerian Exchange Limited, NGX. Correspondingly, the benchmark index, NGX All Share Index (ASI), displayed a remarkable surge, surpassing the psychological threshold of 79,000 points. It achieved a substantial 6.5% Week on Week (W/W) increase, concluding the week at 79,664.66 points, up from the previous week’s 74,773.77 points.

Concurrently, the market capitalization, representing the total investment value in the Exchange, surged by N2.7 trillion, reaching N43.593 trillion compared to N40.917 trillion the previous week.

A summary of activities during the week revealed that the market’s performance was driven by bargain hunting in blue-chip telecommunication stocks, particularly MTNN, which gained 8.0%, and Airtel Africa, with a 6.0% increase.

The overall activity levels reflected the market’s broad gauge, witnessing a significant 139.2% W/W increase in total traded volume and a 15.9% W/W rise in the total traded value. Sectoral performance exhibited positivity, with gains seen in the Insurance Index (14.1%), Banking Index (10.3%), Consumer Goods Index (4.4%), Industrial Goods Index (3.6%), and Oil and Gas Index (3.0%).

Addressing the market outlook, analysts at Cordors Research commented, “In the near term, we believe that positioning for 2023 full-year earnings releases and accompanying dividend declarations will continue to support buying activities on the local bourse. However, caution is advised, and investors should focus on fundamentally justified stocks amid a challenging macro environment for corporate earnings.”

Analysts at InvestData Consulting Limited also shared their perspective, stating, “All eyes are on the anticipated corporate earnings of quoted companies and the policy meeting of the Central Bank of Nigeria in the first month of 2024. Despite the mixed outlook for the year, trading on NGX started positively, with attention on the psychological 79,000 line. Investors are urged to take advantage of potential price corrections, considering global and domestic trends, as the financial market and economic reset in 2024 present substantial opportunities for savvy investors and traders.”