Olufemi Adeyemi 

The equities market experienced a rebound last week, driven by the favorable half-year results for H1’24 released by Zenith Bank Plc and GTBank Plc, which positively impacted the Banking Index.

This led to increased buying activity, particularly in shares of MTN, First Bank of Nigeria Holding, Oando, and Nestle, among others, resulting in a 1.1% rise in the Nigerian Exchange, NGX, All Share Index (ASI), which closed at 97,456.62 points, up from 96,433.53 points the previous week.

Additionally, the market capitalization, reflecting the total value of investments on the Exchange, increased by over N607 billion, reaching N56.001 trillion from N55.394 trillion the prior week. The Month-to-Date (MtD) and Year-to-Date (YtD) returns stood at -0.3% and 30.3%, respectively.

Trading activity showed mixed results, with a 20.2% Week-on-Week (W/W) increase in volume, while the value saw a slight decline of 0.5%. Sector performance was generally positive, with the Banking Index rising by 5.1%, the Oil and Gas Index by 2.0%, the Insurance Index by 1.6%, the Consumer Goods Index by 1.5%, and the Industrial Goods Index by 0.2%.

In their market outlook, analysts at Cordros Research noted that they expect mixed sentiments in the near term, with investors likely to focus on bank stocks due to recent corporate developments.

They also highlighted the potential for profit-taking on stocks that have seen significant gains recently. In the medium term, they anticipate that investor sentiment will be influenced by macroeconomic developments and fluctuations in fixed-income yields.

Similarly, analysts at InvestData Consulting Limited expressed that they foresee continued mixed sentiment driven by profit-taking and bargain hunting, particularly in anticipation of half-year results from other dividend-paying stocks, as sector rotation persists in the market. They noted that portfolio repositioning is ongoing, with investors capitalizing on pullbacks to acquire value.

In their market outlook, analysts from InvestData Consulting Limited stated: "We anticipate a continuation of mixed sentiment driven by profit-taking and bargain hunting, as investors await half-year results from other stocks that pay interim dividends, while sector rotation persists in the market. Portfolio adjustments are ongoing, with investors seizing opportunities during pullbacks to acquire value.

This environment of volatility and price corrections enhances the potential for upward movement. Therefore, investors are encouraged to capitalize on these price adjustments, while also considering global and domestic trends and events."