Stock Market Rebounds As Deadline For Full-Year Results Approaches

Stock Market Rebounds As Deadline For Full-Year Results Approaches

The Nigerian Exchange Limited (NGX) experienced a notable recovery last week as the deadline for the submission of 2024 audited financial statements for companies with a December year-end drew closer. This resurgence in buying sentiment boosted the market’s performance.

The NGX All Share Index (ASI), a key market indicator, rose by 0.7%, closing at 105,660.64 points last Friday, compared to 104,962.96 points recorded the previous day. Similarly, the market capitalization, which represents the total value of securities listed on the NGX, increased by over N438 billion, reaching N66.257 trillion from N65.819 trillion the prior week…READ MORE…

Market observers attributed this upward trend to heightened momentum driven by expectations of positive earnings reports from companies set to release their results. Additionally, the usual end-of-quarter window dressing by market operators and fund managers also played a role in the market’s upward trajectory.

Further analysis of last week’s trading activities revealed that the market’s positive performance was largely propelled by gains in GTCO and Zenith Bank, which recorded increases of 18.2% and 3.1%, respectively, following the release of their full-year 2024 audited financial statements and dividend declarations. As a result, the Month-to-Date (MtD) and Year-to-Date (YtD) returns stood at -2.0% and +2.7%, respectively.

Trading activity was particularly robust, with both trading volume and value surging by 161.5% and 743.1% week-on-week (W/W), respectively. However, sectoral performance was mixed, as the Banking Index gained 5.6%, the Insurance Index rose by 1.9%, and the Consumer Goods Index increased by 0.3%. In contrast, the Oil & Gas Index declined by 1.7%, while the Industrial Goods Index remained flat.

Looking ahead, analysts at Cordros Research anticipate choppy trading in the upcoming holiday-shortened week, with possible profit-taking on recent gainers alongside renewed bargain hunting in undervalued stocks. Meanwhile, analysts at InvestData Consulting expect a continuation of mixed sentiment, driven by bargain hunting and profit-taking as more corporate earnings and dividend announcements emerge.