Stock Market Braces For Volatile Week As Investors Juggle Profits, Bargains

Trading activity on the Nigerian equities market is expected to remain volatile this week as investors balance profit-taking with selective bargain hunting across key sectors.

Speaking on the market outlook for the week, Cordros Securities Limited said, “Looking ahead, trading activity is likely to remain volatile as investors balance profit-taking with selective bargain hunting. Market participants will also monitor the May inflation report expected next week, which could influence expectations for future interest rate decisions.”

Cowry Assets Management Limited stated that “the Nigerian equities market is expected to maintain a cautiously positive tone in the near term, supported by sustained investor interest in fundamentally strong stocks and ongoing portfolio repositioning.

“However, intermittent profit-taking may trigger short-term volatility and reinforce a stock-selective trading environment. Overall direction will likely be driven by macroeconomic developments, earnings results, and relative attractiveness versus fixed income, with gains expected to remain concentrated in high-quality equities.”

Meanwhile, the domestic equity market closed the week on a positive note, recovering from an early-week sell-off on the back of improved investor sentiment.

Precisely, buying interest in Airtel Africa, MTN Nigeria Communications (MTNN), First Holdco, among others, lifted the All-Share Index by 0.88 per cent week-on-week to close at 244,738.7 points, bringing the month-to-date and year-to-date returns to 1.0 per cent and 57.3 per cent, respectively.

Similarly, the market capitalisation rose by N1.38 trillion to close the week at N156.970 trillion. Market breadth remained strong, closing positive with 48 advancing stocks against 43 decliners. This underscores a more selective trading environment, where gains were concentrated across several counters amid the broader market uptrend.

Associated Bus Company led the gainers’ table by 25.60 per cent to close at N7.80 per share. Consolidated Hallmark Holdings followed with a gain of 23.13 per cent to close at N8.25, while Abbey Mortgage Bank went up by 21.93 per cent to close at N11.40 per share.

On the other side, Fidson Healthcare led the decliners’ table by 25.86 per cent to close at N101.20 per share. Neimeth International Pharmaceuticals followed with a loss of 19.34 per cent to close at N8.55, while SUNU Assurances declined by 11.38 per cent to close at N3.97 per share.

Overall, a total turnover of 4.964 billion shares worth N207.521 billion in 235,966 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 3.966 billion shares valued at N175.659 billion that exchanged hands the previous week in 343,587 deals.

The Financial Services Industry led the activity chart with 4.116 billion shares valued at N84.607 billion traded in 96,165 deals, contributing 82.92 per cent and 40.77 per cent to the total equity turnover volume and value, respectively.

The Services Industry followed with 232.479 million shares worth N4.955 billion in 17,614 deals, while the Industrial Goods Industry traded a turnover of 144.988 million shares worth N39.077 billion in 24,775 deals.

Trading in the top equities—Sterling Financial Holdings Company, FCMB Group and Access Holdings—accounted for 2.883 billion shares worth N36.188 billion in 15,533 deals, contributing 58.09 per cent and 17.44 per cent to the total equity turnover volume and value, respectively.