Stocks gain N1.06trn in one week

…Market rallies by 1.53% in January

In the trading week ended Friday January 31, investors in Nigeria’s stock market gained about N1.063trillion as the market rose by 0.87 percent.

Corporate earnings and announcements remained the primary market drivers in the review week which saw mixed sessions of bargains and profit taking.

“Important to note also, is the Up/Down (UD) ratio of 0.51x that signals weak buying pressure relative to selling (after taking the volume of the intensity of price movements into consideration), this hints at potential profit-taking or consolidation in the near term. “While bullish momentum persists, a short-term pullback or sideways movement is possible before another leg up,” Coronation research analysts said in their January 30 note.

Read also: NGX-ASI down by 0.44% as stocks shed N284bn

As earnings season progresses remarkably investors are positioning in dividend paying stocks ahead of their full year rewards.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation increased week-on-week (WoW) from 103,598.3 points and N63.645 trillion respectively to 104,496.12 points and N64.708trillion.

While consumer goods, banking, and oil & gas stocks were on bargain, insurance and industrial stocks were on offer in the review week.

Despite mixed trading sessions in the review week, the market closed in the green zone, pushing the returns year-to-date (YtD) back to the positive region of +1.53percent.