Dr Benneth Eze, Head of Research and Development at the Chartered Institute of Stockbrokers, has projected a slowdown in Nigeria’s equities rally.
He said the market’s recent strong performance reflected investor optimism, but cautioned that such momentum was rarely sustained without periodic corrections and consolidation phases.
This comes in spite of investors recording a weekly gain of N5.508 trillion, reflecting sustained bullish sentiment across major sectors of the market.
The News Agency of Nigeria (NAN) reports the NGX All-Share Index rosfe 3.94 per cent to 225,722.49, while market capitalisation reached N145.335 trillion.
This compares with the previous week’s 217,167.57 and N139.827 trillion, underscoring strong market expansion and increased investor participation.
Consequently, investors’ portfolios increased by N5.508 trillion within the week under review, highlighting the scale of value appreciation.
Eze noted that markets rarely sustain prolonged upward trajectories without corrections driven by profit-taking and changing investor sentiment.
“While the bullish tone may persist, maintaining the same rally intensity is unlikely due to expected profit-taking,” he said.
According to him, investors who entered earlier positions may begin to lock in gains, thereby creating short-term downward pressure on prices.
He added that favourable liquidity conditions could still support market momentum in the near term.
“Both institutional and retail investors continue reallocating funds into equities in search of real returns,” he said.
He said this trend was driven by relatively weak fixed income yields when adjusted for prevailing inflation levels.
Eze said corporate earnings expectations and ongoing disclosures were also boosting investor confidence across the equities market.
“Strong first-quarter results or positive outlooks from firms could sustain current valuations,” he added.
He noted that earnings surprises and improved guidance from companies often reinforce buying interest among market participants.
Eze said foreign portfolio sentiment, though still cautious, was gradually improving amid signs of macroeconomic stabilisation.
“Even marginal inflows could lift the market given its relatively shallow depth.
“After such a sharp rally, profit-taking is inevitable and may trigger intermittent pullbacks,” Eze warned.
He added that inflation trends, interest rate direction and currency stability remained key risks to sustained market enthusiasm.
Meanwhile, investors traded 3.805 billion shares worth N213.955 billion in 297,202 deals during the week.
This compares with 3.588 billion shares valued at N195.313 billion traded in 254,553 deals the previous week.
The Financial Services Industry led activity with 2.739 billion shares worth N106.269 billion in 135,101 deals.
This accounted for 71.99 per cent of volume and 49.67 per cent of total market value, reflecting its dominance.
The Services Industry followed with 212.324 million shares valued at N4.024 billion in 17,042 deals.
The Consumer Goods Industry ranked third, recording 180.076 million shares worth N13.269 billion in 32,457 deals.
Access Holdings Plc, United Bank for Africa Plc and FirstHoldCo Plc dominated overall trading activity during the period.
They jointly accounted for 814.060 million shares worth N39.032 billion in 37,195 deals.
This represented 21.40 per cent of total traded volume and 18.24 per cent of overall value recorded.
Forty-six equities appreciated during the week, lower than 61 recorded in the previous week.
Fifty-three equities declined, higher than 36 in the preceding week, while 47 remained unchanged.
This reflects a gradual shift towards mixed market sentiment despite the overall bullish trend observed earlier.
UAC of Nigeria, Union Dicon Salt, NASCON Allied Industries, Trans-Nationwide Express and Zichis Agro Allied Industries led gainers.
They recorded price increases of N42, N5.40, N50.90, N1.85 and N3.19 respectively during the week.
Infinity Trust Mortgage Bank, Abbey Mortgage Bank, Guinea Insurance, Stanbic IBTC Holdings and Livingtrust Mortgage Bank topped the losers’ chart.
They declined by N9.65, N2.70, 19k, N26.05 and 45k respectively, reflecting profit-taking and weak demand.
Dangote Sugar Refinery Plc has applied for approval to list a rights issue on the NGX.
The company plans to issue 8.097 billion ordinary shares at N60 per share to existing shareholders.
The offer will be on the basis of two new shares for every three held as at April 20, 2026.
The NGX also listed MeCure Industries Plc’s Series 6 Commercial Paper valued at N13.46 billion.
Coleman Technical Industries Plc listed Series 5 and 6 Commercial Papers worth N6.05 billion and N59.98 billion respectively.
These listings are part of broader efforts by firms to raise short-term funding from the capital market.
Additional units of Federal Government bonds for late 2025 and early 2026 issues were also listed on the NGX.
Market analysts said such listings enhanced liquidity and deepened the Nigerian capital market over time.(NAN)(www.nannews.ng)