Bullish momentum continued last week on the Nigerian Exchange Limited, NGX, as investors’ confidence intensified amid portfolio rebalancing following release of some unaudited 2024 results of corporate earnings. The positive sentiment prevailed through all five trading sessions in the week.

Consequently, the NGX All-Share Index, ASI hits a new high from its January high of 105,530 to close on Friday at 105,933.03 bases points as against 104,496.12 points it closed the previous week. This upward movement is largely driven by weekly gains in key banking stocks such as FBN Holdings, Guaranty Trust Holding Company, and Access Holdings.


Analysts noted that with the ongoing earnings season, market momentum is expected to remain strong, supporting further upside in Nigerian equities.

Another major stock market gauge, market capitalisation, which represents the total value of shares listed on the Exchange gained over N884 billion last week to close at N65.592 trillion from N64.708 trillion it recorded the previous week.

Meanwhile, analysis of the market showed that notable gains in Presco, which garnered 19.7%, FBNH 10.2%, and MTNN 2.0% drove a 1.4% Week-on-Week, W/W increase in the NGX ASI bringing the Year-to-Date, YtD return to 2.9%.

However, trading activity remained mixed as the total trading volume declined by 5.9% W/W, while trading value increased by 42.3% W/W. Meanwhile, sectoral performance was broadly positive as the Banking Index surged by 4.7%, Insurance Index 1.6% , Industrial Goods Index 0.9%, and Oil & Gas Index 0.6%, while the Consumer Good Index declined by -0.6%, being the sole loser of the week under review.

Reacting to market development, analysts at Cordros Research stated : Next week, the bullish momentum is expected to persist, driven by a fresh round of corporate results and dividend announcements, with investor optimism leaning toward stocks with strong financial performance.”

Reacting as well, analysts at InvestData Consulting said: “Investor sentiment continues to be strong, with significant gains across sectors such as healthcare technology, transportation, and technology services. We expect mixed sentiments to continue as investors confidence boost positioning on strong corporate numbers, while rebalancing their portfolios midst 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”.


https://www.vanguardngr.com/2025/02/investors-confidence-boosts-stock-market-amid-portfolio-rebalancing/