Despite a two-day public holiday declared by the Federal Government on Monday and Thursday, investors gained over N500 billion in three trading days as the Nigerian Exchange Limited (NGX) continues upside growth.

Last week, the all-share index (ASI) advanced by 0.71 per cent week-on-week, closing at a record high of 115,429.54 points. Also, the market capitalisation rose by N512.52 billion to settle at N72.79 trillion, pushing the year-to-date return to 12.15 per cent, a reflection of sustained market resilience and comparative attractiveness over the money market and fixed-income instruments.

Market breadth remained positive at 1.41x with 55 gainers outpacing 39 losers, indicating broad-based buying interest, particularly in fundamentally strong stocks.

However, overall trading activity was subdued; the volume and value of trades declined by 35.77 per cent and 32.31 per cent, respectively, to 2.05 billion shares valued at N50.68 billion.

In contrast, the number of deals increased slightly by 1.47 per cent to 64,702, suggesting heightened interest in small – and mid-cap stocks as investors tactically repositioned ahead of key economic data.

Sectoral performance was mixed, highlighting ongoing portfolio realignments and profit-taking in recent outperformers. The oil and gas sector declined by 1.22 per cent, driven by sell-offs in Conoil and Aradel.

The insurance index was down 0.11 per cent, following losses in Wapic and Cornerstone. The commodity index slipped 1.41 per cent, reflecting weaker activity in agricultural names.

On the flip side, the consumer goods and industrial goods sectors posted gains, buoyed by renewed buying interest in stocks such as Berger Paints, Ella Lakes, May & Baker, Honeywell Flour Mills, and Dangote Sugar Refinery.

The industrial index received strong support from BUA Cement, reinforcing investor confidence in well-positioned blue-chip companies.

The banking sector ended the week flat, as negative sentiments in Tier-1 banks offset gains in select Tier-2 banks. This cautious positioning underscores investor sensitivity ahead of the forthcoming inflation report and potential monetary policy adjustments.

According to analysts at Cowry Asset Management, the market is likely to sustain a mildly bullish tone in the coming week, as attention shifts to the upcoming release of May 2025 inflation data.

They added that a positive inflation surprise could further buoy demand for equities, potentially reducing the appeal of fixed-income investments in the short run. However, they cautioned that intermittent profit-taking is likely, as investors reassess valuations following recent market rallies.

Despite near-term volatility, Cowry Asset Management maintained a constructive outlook on the market, advising investors to focus on quality.

Cordros Capital foresees a continued rebound in domestic crude oil production, which should support export volumes. However, they highlighted that softer global oil prices could cap export earnings growth over the medium term.

“Looking ahead, we anticipate continued recovery in domestic crude oil production. However, softer oil prices are expected to limit the upside in the medium term, which may dampen growth in total exports,” Cordros analysts explained.

They also projected that increased local refining capacity would help curtail oil imports. Still, a simultaneous recovery in consumer demand, coupled with improved foreign exchange liquidity, is expected to drive an uptick in non-oil imports potentially offsetting gains on the trade balance.(The Guardian)