The Nigerian stock market extended its weekly gains as investors continued buying selected blue-chip stocks despite broader profit-taking.
The Nigerian stock market benchmark, the NGX All-Share Index (ASI), rose 0.1% to 245,573.60 points from 245,283.68 points the previous week. Institutional demand for fundamentally strong banking, consumer goods and energy stocks supported the modest increase, although many medium and small-cap shares faced selling pressure.
The market showed resilience despite cautious sentiment, with investors taking profits after the strong rally recorded in recent months. NGX market capitalisation also increased by N187 billion, reaching N158.513 trillion from N158.326 trillion.
Investors traded 5.359 billion shares worth N139.053 billion in 261,869 deals, compared with 5.119 billion shares valued at N404.762 billion in 285,223 deals during the previous week.
The Financial Services Industry led trading by volume, recording 3.469 billion shares worth N73.013 billion across 117,509 deals. It accounted for 64.73% of total equity turnover volume and 52.51% by value. Oil and Gas followed with 1.023 billion shares worth N18.9 billion, while ICT recorded 232.368 million shares valued at N14.624 billion.
The three most traded equities by volume — Japaul Gold & Ventures Plc, Fortis Global Insurance Plc and FCMB Group Plc — accounted for 2.562 billion shares worth N14.173 billion.
Analysts at InvestData Consulting Limited said: “Investor attention remained focused on the ongoing corporate earnings season, with market participants positioning ahead of additional half-year financial results and possible interim dividend declarations. “This selective accumulation by institutional investors continues to underpin the market, particularly within the banking sector where expectations of stronger profitability remain high despite prevailing macroeconomic challenges.
“This combination of sector rotation and value hunting continued to define market direction, as investors balanced profit-taking with fresh investments in fundamentally attractive counters.”
The Nigerian stock market may continue to benefit from institutional demand as investors assess earnings, dividends and sector-specific opportunities.
Do you expect institutional buying to keep the Nigerian stock market on an upward path?
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