The Nigerian Exchange Limited extended its bullish trading on Thursday with a N97bn gain for investors.
Both the All-Share Index and the market capitalisation inched up by 0.10 per cent to 145,476.15 and N92.73tn, respectively.
The sustained positive trading lined up with the expectations of analysts for a year-end rally in the market, despite the bearish sentiments that had been recorded in recent times. AIICO researchers, in their weekly report, said, “We anticipate a market rebound as investors seek opportunities following November’s price declines and position for a potential year-end rally. However, concerns over the planned implementation of the new CGT in 2026 may continue to weigh on sentiment.”
Thursday’s positive run was driven by an uptick in the demand for WAPCO (+3.45 per cent), Nigerian Breweries (+2.79 per cent), Ecobank Transnational Incorporated (+8.53 per cent) and Guaranty Trust Holding Company (+1.15 per cent).
However, in contrast with the overall market performance, market breadth closed negative as 28 laggards outnumbered 23 winners. Ellah Lakes (-10.00 per cent) and Eunisell (-10.00 per cent) led the losers, while UAC Nigeria (+10.00 per cent) topped the advancers’ log to close at N88.00, followed by Morison, which gained 9.94 per cent to close trading at N3.54 per share, and ETI stocks, which rose by 8.53 per cent to N36.90.
Trading activity indicated mixed signals. Share volume declined by 14.15 per cent to 1.93 billion units, and transaction value fell by 8.47 per cent to N19.19bn. However, the number of deals rose by 8.63 per cent to 23,369 transactions. Fidelity Bank led the volume charts with 31.0 million units, while GTCO led the value chart with N2.5bn worth of trades.
Across the sectors, performance was largely bullish, with five sectors ending the session in the green. The Insurance sector (+1.56 per cent) led the charge, driven by price appreciations in AXA Mansard (+7.75 per cent) and WAPIC (+8.47 per cent). Similarly, the Banking (+0.91 per cent), Industrial Goods (+0.48 per cent), Consumer Goods (+0.28 per cent), and Oil & Gas (+0.08 per cent) indices closed positive, following buy interest in ETI (+8.53 per cent), WAPCO (+3.45 per cent), NB (+2.79 per cent), and Oando (+1.28 per cent), respectively. Meanwhile, the Commodity Index closed flat.
In a review of trading activities on the local bourse in November, Meristem Securities said, “Looking into December, market activity is likely to remain mixed. Some investors may rebalance portfolios ahead of year-end obligations, while others continue to react to the capital gains tax, which is expected to take effect in January 2026. At the same time, positioning ahead of corporate earnings and dividend payouts could support trading in high-yield and fundamentally strong stocks. Overall, foreign inflows may remain cautious, but selective domestic activity is expected to sustain market participation.
“While several fundamentally strong stocks are now trading at more attractive levels following the significant pullback in November, this could encourage some early-month bargain hunting as investors begin to position ahead of 2025FY earnings and potential dividend declarations. Additionally, the MPC’s decision to hold rates while adjusting the asymmetric corridor may also sustain investors’ interest in the banking sector, as increased liquidity gives banks more funds to lend to the real sector, potentially boosting their earnings. However, December typically comes with its own dynamics. With the festive season underway, corporates and individuals tend to draw down cash for year-end incentives, salary adjustments, bonuses, and holiday spending. This often leads to reduced liquidity in the market and can trigger portfolio adjustments, especially from institutional investors looking to tidy up positions before year-end. As a result, while early-month sentiment may lean positive, we expect a more mixed performance as the month progresses, with the market leaning slightly softer toward the close of December.”
