Easter holiday: Stock market trades cautiously as investors sustain rally

By Peter Egwuatu  

The Nigeria stock market traded cautiously last week, even as investors sustained the ongoing rally.

Consequently, despite the shortened trading days of the week due to the Easter holidays, capital appreciation reached over N837 billion on the Nigerian Exchange Limited, NGX.

The NGX market capitalisation, which represents the total value of stocks listed on the Exchange, rose to N129.806 trillion from N128.806 trillion the previous week.

In the same vein, another major performance indicator, the NGX All Share Index, ASI, appreciated by 0.4% Week on Week, WoW, to settle at 201,698.89 points from 200914.06 points.  

The performance was supported by bargain hunting in bellwether stocks such as MTN, which gained 5.9%, GTCO 5.1%,  Transcorp 4.2% and Unilever 10.0%.  

On market activity, trading was subdued, with volume declining by 27.7% WoW and value down by 42.9% WoW.

Sectoral performance was mixed, as the Banking Index rose 0.7%,   while the Insurance Index declined by -4.2%, Consumer Goods Index   -1.7% and Industrial Goods   Index-0.2%.

The Oil and Gas Index ended the week under review flat.

Trading activity slowed considerably during the session, reflecting the impact of the shortened trading week and a more cautious stance among investors.

On the global front, developments in the oil market continue to shape investor sentiment. Crude oil prices surged significantly, crossing the $110 per barrel mark amid escalating geopolitical tensions between the United States and Iran. Brent crude advanced by $7.96, representing a 7.9% increase to settle at $109.12 per barrel.

According to analysts, the rally in oil prices is being driven by fears of prolonged supply disruptions, particularly given the absence of clear signals pointing to de-escalation. Concerns over potential constraints in key supply routes, including the Strait of Hormuz, have heightened market anxiety. Additionally, warnings from global energy authorities about possible supply shocks beginning to impact major economies have further reinforced bullish sentiment in the oil market. For Nigeria, higher oil prices present a mixed outlook supportive of fiscal revenues but also posing inflationary risks that could influence monetary policy and overall economic stability.

Reacting on market outlook, analysts at Cordros Capital stated : “ Looking ahead, we expect the market to trade with a cautious bias, with selective positioning likely to persist as investors begin to position ahead of   first quarter 2026, Q1’26 earnings. Bargain hunting may emerge in beaten-down names; however, flows should remain concentrated in fundamentally strong counters. In addition, recent corporate actions and dividend announcements are expected to sustain interest, particularly within the banking sector.”

Also reacting analysts at InvestData Consulting Limited, stated:  

Looking ahead, the market is expected to trade within a narrow range in the short term, with a slight bullish bias supported by sector rotation and bargain hunting. Elevated oil prices could sustain interest in energy-related stocks, while banking and consumer goods stocks may continue to see mixed sentiment due to profit-taking and valuation concerns. Global uncertainties, particularly around geopolitics and inflation, are likely to keep investors cautious.”

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