The Nigerian stock market kicked off the first trading week of 2024 on a positive note, as investors saw significant gains amounting to N2.7 trillion on the Nigerian Exchange Limited, NGX.

During this period, the benchmark index, NGX All Share Index (ASI), experienced a notable surge, breaking through the 79,000 psychological mark. It recorded a substantial 6.5% Week on Week (W/W) gain, closing at 79,664.66 points, compared to 74,773.77 points the previous week. Similarly, the market capitalization, representing the total value of investments in the Exchange, surged by N2.7 trillion to close at N43.593 trillion, up from N40.917 trillion the previous week.

The week's activity summary revealed that bargain hunting in blue-chip telecommunication stocks, particularly MTNN, which gained 8.0%, and Airtel Africa, which saw a 6.0% increase, drove the market's performance. Total traded volume increased significantly by 139.2% W/W, while the total traded value recorded a 15.9% W/W increase. Sectoral performance was positive, with gains in the Insurance Index at 14.1%, Banking Index at 10.3%, Consumer Goods Index at 4.4%, Industrial Goods Index at 3.6%, and Oil and Gas Index at 3.0%.

Analysts at Cordors Research expressed their outlook, stating, "In the near term, we believe positioning for 2023 full-year earnings releases and accompanying dividends declarations will continue to support buying activities on the local bourse, even as institutional investors continue to search for clues on the direction of yields in the FI market. However, we advise investors to seek trading opportunities in only fundamentally justified stocks as the weak macro environment remains a significant headwind for corporate earnings."

Additionally, analysts at InvestData Consulting Limited commented, "All eyes are still on the expected corporate earnings of quoted companies and the policy meeting of the Central Bank of Nigeria in this first month of 2024. Trading on NGX opened for the year on a positive note, changing the mixed outlook for 2024, even as the fiscal and monetary authorities are yet to give a clear direction of where they are headed. We expect mixed sentiment on profit-taking, as NGX crosses the 79,000 psychological line on positioning by bargain hunters ahead of unaudited fourth quarter 2023 (Q4 23) numbers and volatility in the face of the upcoming MPC meeting. As such, investors should take advantage of price correction, while also monitoring global and domestic trends and events. The anticipated financial market and economic reset in 2024 presents significant opportunities for creating wealth for smart investors and traders."

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