Nigerian Stock Market Braces for Pre-Santa Rally Amid New Year Anticipation

As the week unfolds, the Nigerian stock market anticipates a pre-Santa rally characterized by strategic positioning ahead of the New Year, following last week’s bullish performance. Analysts project a positive outlook for the equities market, driven by increased buying sentiments, strong momentum, and strategic portfolio rebalancing.

Last week witnessed banking stocks leading the Santa Claus rally, extending the market’s positive streak for the eighth consecutive week. The benchmark NGX All-Share Index achieved a new all-time high, closing above the psychological 72,000 line. This upward trajectory persisted despite weak macroeconomic data and ongoing challenges in the nation’s economic landscape.

Analysts’ Outlook:

  • Cowry Assets Management Limited expects positive sentiment and profit-taking, driven by bargain hunting for dividend-paying stocks.
  • Cordros Securities Limited foresees a mixed market as investors selectively choose counters, emphasizing the importance of investing in fundamentally justified stocks.
  • Afrinvest Limited anticipates the continuation of the pre-Santa rally amid strategic positioning for the new year.

Last Week’s Trading Activities:

  • The equities market sustained an upward trajectory, closing with a 1.18% week-on-week increase in the benchmark index at 72,389.23 points.
  • Market capitalization increased by N464 billion to close at N39.613 trillion.
  • The NGX Banking index recorded the highest gain for the week, rising by 7.01%.
  • Positive market breadth with 53 equities appreciating, 32 depreciating, and 70 remaining unchanged.

Top Gainers and Losers:

  • Infinity Trust Mortgage Bank led gainers, surging by 59.32%.
  • Secure Electronic Technology led decliners with a 16.00% loss.

Overall Turnover:

  • Investors traded 1.882 billion shares valued at N31.630 billion in 33,020 deals.
  • The Financial Services Industry dominated, contributing 72.96% to total equity turnover volume.

Top Three Equities:

  • Access Holdings, Guaranty Trust Holdings Company (GTCO), and Zenith Bank accounted for 26.12% of total equity turnover volume and 48.90% of value.

As the market gears up for potential pre-Santa rally activities, investors remain watchful, navigating sector rotations, portfolio rebalancing, and emerging market dynamics.

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