The Nigerian Stock Exchange’s All-Share Index (ASI) surged to the 100,000 milestone, marking a 0.32% increase amidst subdued trading activity. Following a positive month-end performance with a 0.76% rise in June, the index saw renewed investor interest driven by fund managers’ window dressing activities. This week’s trading session witnessed upward movement, halting a three-session bearish trend despite low trading volumes.
Investor sentiment was buoyed as the ASI closed the week at 100,057.49 points for the first time since mid-April 2024, with both small and large-cap stocks seeing increased positioning ahead of the half-year reporting season. Market capitalization also rose by 0.32% week-on-week to N56.60 trillion, despite overall tepid market sentiment and reduced trading activity.
Investors gained N178.05 billion from two of the week’s five trading sessions, bringing the year-to-date return to 33.81%. However, trading volumes fell by 19.69% to 2.65 billion units, and total traded value decreased slightly by 5.98% to N49.98 billion compared to the previous week. On a positive note, the number of trades increased by 51.11% to 41,610 deals.
Sector performance varied, with gains in the Oil & Gas and Insurance sectors leading positive movements, while the Consumer Goods and Industrial Goods sectors experienced declines due to specific stock movements. Stocks like UCAP, MBENEFIT, and SEPLAT contributed significantly to sector gains, while JAIZBANK, DAARCOMM, and CHAMPION recorded losses amidst negative investor sentiment.
Looking forward, the market anticipates a strong start to the new trading quarter, driven by earnings reports and interim dividends, particularly from the banking sector. Bargain hunting and portfolio adjustments are expected to shape market dynamics as investors position themselves ahead of second-quarter results and the latter half of the year, emphasizing stocks with robust fundamentals.