Notably, Seplat's shares rose by 5.09% week-on-week, Fidelity Bank by 13.07%, and FBNH by 4.0%, all of which significantly influenced the Nigerian Exchange (NGX) All Share Index (ASI), which climbed to 97,606.63 points from 97,520.54 points the previous week.
In a similar vein, another key market indicator, market capitalization, saw a modest increase of N5 billion week-on-week, reaching N56.088 trillion, up from N56.038 trillion the prior week.
Analysts have observed that market participants are actively taking profits and adjusting their portfolios in anticipation of quarterly earnings reports and macroeconomic data, particularly in the context of rising rates in fixed income instruments and the seasonal trends typical of the last quarter of the year.
Furthermore, they pointed out that the recent pullbacks and narrowing market breadth present buying opportunities for astute investors and savvy traders, as they realign their portfolios towards sectors and companies likely to report favorable earnings ahead of the third quarter (Q3) earnings season.
Early filers are expected to commence the earnings season next week, with particular attention on the September Consumer Price Index reports from the National Bureau of Statistics (NBS).
These figures are anticipated to influence investment decisions leading up to the Central Bank of Nigeria's policy meeting in November. Additionally, Nigerian Breweries and other companies have informed the NGX of their closure periods and board meeting dates to approve their financial results this month.
Analysts at InvestData Consulting Limited commented on the market performance, stating that the government's economic reforms, characterized by a series of fiscal and monetary policies, have yet to steer the nation's economy toward recovery. This is evident despite a noticeable slowdown in inflation and mixed macroeconomic indicators.
They also highlighted challenges related to the implementation of these reforms, particularly in light of fluctuating oil production levels and the ongoing depreciation of the Naira, even as oil prices remain above $79 per barrel in the international market.
Regarding the market outlook, the analysts noted that mixed sentiment is likely to persist due to profit-taking, buying interests, and portfolio rebalancing as the Q3 earnings reporting period approaches. They observed ongoing sector rotation, with investors capitalizing on pullbacks to acquire undervalued assets.
This environment of volatility and price corrections may enhance upside potential, suggesting that investors should seize opportunities presented by these price adjustments while considering both global and domestic trends and events.