The Nigerian Exchange Limited (NGX) witnessed a significant surge in investor confidence last week, with a gain of N613 billion in five trading sessions. The all-share index (ASI) appreciated by 0.9% to close at 109,710.37 points, while market capitalisation rose by N613.99 billion to N68.95 trillion.
The year-to-date return on investment increased to 6.59%, reflecting a bullish market sentiment. Analysts attributed the positive performance to softer inflation numbers and anticipation of a more accommodating monetary stance from the Central Bank of Nigeria (CBN).
The April 2025 inflation rate eased to 23.71%, bolstering market sentiment ahead of the CBN’s upcoming Monetary Policy Committee (MPC) meeting. Investors are also eagerly awaiting the release of Nigeria’s first-quarter 2025 GDP figures
All sectoral indices recorded gains, with the NGX Consumer Goods index leading with a 4.08% gain. The NGX Insurance Index advanced by 2.47%, while the NGX Banking Index rose by 1.19%. Despite subdued trading activity, market breadth remained strong, with 61 gainers outpacing 31 losers.
Ambrose Omordion, Chief Research Officer of Investdata Consulting Limited, noted that the current market phase presents an opportunity for investors to acquire fundamentally strong stocks at attractive valuations. “The current markup phase presents a window for investors to acquire fundamentally strong stocks trading at attractive valuations, particularly as portfolio managers engage in rebalancing to optimise returns,” he said.
Analysts at Cowry Asset Management Limited projected a continuation of the bullish momentum, citing expectations of a possible interest rate cut by the CBN. “The market is likely to remain buoyant, supported by expectations of a possible interest rate cut by the Central Bank of Nigeria (CBN),” they said. They advised investors to prioritise equities with robust fundamentals and attractive valuations.
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