…Market Capitalization climbs to N63.645 trillion
…Meanwhile, global stock markets maintained a positive trajectory this week as optimism surrounding Trump’s economic policies
SAT JAN 25 2025-theGBJournal| The Nigerian equities market notched back-to-back weekly gains, driven by bargain hunting in MTNN (+6.4%) following the NCC’s approval of a 50.0% tariff hike for telecommunication services.
The market also reacted positively to TRANSPOWER’s (+8.0%) positive earnings release and accompanying dividend payment.
Consequently, the All-Share Index (ASI) advanced by 1.2% w/w to 103,598.46 points, bringing the Year-to-Date (YTD) return to +0.7%.
Trading in the top three equities namely Wema Bank Plc, Secure Electronic Technology Plc and Access Holdings Plc (measured by volume) accounted for 1.437 billion shares worth N15.406 billion in 5,292 deals, contributing 45.89% and 20.13% to the total equity turnover volume and value respectively.
All other indices finished higher with the exception of NGX Insurance, NGX Consumer Goods, NGX Oil and Gas and NGX Sovereign Bond which depreciated by 1.20%, 1.20%, 0.93% and 0.10% respectively while the NGX ASeM closed flat.
Market activity remained vibrant, with trading volume and value increasing by 36.3% w/w and 28.5% w/w, respectively.
Meanwhile, sectoral performance was mixed, as the Banking (+4.1%) and Industrial Goods (+0.1%) indices recorded gains, while the Consumer Goods (-1.2%), Insurance (-1.2%) and Oil & Gas (-0.9%) indices posted declines.
With the commencement of the 2024FY earnings season, we expect the NGX to be flooded with corporate earnings in the coming weeks as companies publish unaudited 2024FY numbers with accompanying dividend declarations.
We believe this should provide a catalyst for buying activities and improve general market sentiments.
Meanwhile, global stock markets maintained a positive trajectory this week as optimism surrounding Trump’s economic policies, resilient corporate earnings, and a buoyant economic outlook boosted investor confidence.
At the time of writing, US equities (DJIA: +2.5%; S&P 500: +2.0%) were set to end the week higher, underpinned by optimism surrounding Trump’s announcement of plans for a USD500.00 billion private-sector investment aimed at advancing the US’ AI infrastructure, and strong corporate earnings reports from Netflix, Procter & Gamble, Johnson & Johnson, and General Electric.
Similarly, European equities (STOXX Europe: +1.6%, FTSE 100: +0.7%) were on course to end the week positively due to strong corporate earnings updates and dovish signals from European Central Bank policymakers hinting at potential interest rate cuts at next week’s policy meeting.
Asian equities (Nikkei 225: 3.9%, SSE: +0.3%) reflected the broader market optimism, supported by Trump’s more measured stance on tariffs, stronger-than-expected trade data from Japan, and additional support measures announced by Chinese authorities to channel capital into the stock market.
Elsewhere, the Emerging Market (MSCI EM: 1.0%) and Frontier Market (MSCI FM: +1.3%) indices advanced, reflecting gains in China (+0.3%) and Vietnam (+1.3%), respectively.
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