Positive momentum continued on the Nigerian Exchange Limited (NGX) with telecom giants Airtel Africa Plc and MTN Nigeria Plc leading the charge, marking a gain of 3.31% in the week’s trading.
This surge in sentiment saw investors in these telecom companies netting approximately N394 billion by the close of trading on December 23rd.
Despite economic fluctuations, the market for the telecom segment, comprising Airtel Africa Plc and MTN Nigeria Plc, has remained robust.
Airtel Africa closed trading at N1,887.60 per share, reflecting a market capitalization of N7.053 trillion on the NGX, marking a gain of N289 billion or 4.27% week-on-week. Similarly, MTN Nigeria shares rose to N250 per share, amounting to a market capitalization of N5.248 trillion, recording an addition of N105 billion or 2.04% in market capitalization.
Market analysts attribute the positive impact on equities to the Santa Claus Rally, a phenomenon known for increased stock market gains as the year concludes as the Rally signifies a heightened occurrence of stock market gains leading up to December 25, often influenced by increased holiday shopping, seasonal optimism, and institutional investors adjusting their portfolios before Christmas vacations.
Indicators show a 2.26% rise in the NGX All-Share Index and Market Capitalization, closing the week at 74,023.27 and N40.507 trillion respectively. However, select indices such as NGX ASeM, NGX Consumer Goods, and NGX Growth witnessed marginal depreciation.
Trading statistics revealed a total turnover of 2.474 billion shares worth N53.787 billion in 35,848 deals, showcasing increased investor activity compared to the previous week.
The Financial Services Industry dominated the charts in both volume and value, contributing significantly to total equity turnover volume and value. The conglomerates and services industries followed in terms of turnover and deals, demonstrating notable investor participation.
Furthermore, trading in top equities like Abbey Mortgage Bank Plc, Transnational Corporation Plc, and Access Holdings Plc contributed significantly to equity turnover volume and value.