MTN, Transcorp Power Propel Stock Market Rally as Investors Gain Over ₦794 Billion
- Posted on January 27, 2025
- Stock Market
- By Samiat
MTN, Transcorp Power Propel Stock Market Rally as Investors Gain Over ₦794 Billion
The Nigerian stock market ended last week on a strong bullish note, driven by increased investor demand for MTN Nigeria and Transcorp Power shares. This surge followed the Nigerian Communications Commission (NCC)’s approval of a 50% tariff hike for telecom services and Transcorp Power’s impressive 2024 financial performance, which boosted investor confidence.
Key Drivers of Market Gains
MTN Nigeria saw significant investor interest following the NCC’s decision to approve a 50% increase in telecom tariffs, boosting revenue expectations for the company.
Transcorp Power surged 8% in a week after reporting strong earnings and announcing a dividend payout, making it one of the top-performing stocks.
Stock Market Performance Overview
✅ The Nigerian Exchange Limited (NGX) All-Share Index (ASI) advanced 1.2% week-on-week (WoW), closing at 103,598.46 points on Friday.
✅ The Year-to-Date (YTD) return rose to 0.7%, reflecting renewed market optimism.
✅ Trading activity remained strong:
• Trading volume increased by 36.3% WoW
• Trading value grew by 28.5% WoW
Sectoral Performance: Winners & Losers
Gaining Sectors:
• Banking Index: +4.1%
• Industrial Goods Index: +0.1%
Declining Sectors:
• Consumer Goods Index: -1.2%
• Insurance Index: -1.2%
• Oil & Gas Index: -0.9%
Top Gainers & Losers of the Week
✅ Biggest Gainer: SCOA Nigeria, soaring 59.68%
✅ Other Top Performer: EUNISELL Interlinked Plc, rising 18.95%
❌ Biggest Loser: John Holt, dropping 18.47%
Analyst Outlook: What’s Next for the Market?
Cordros Research analysts predict that with the full-year 2024 earnings season kicking off, the NGX will be flooded with corporate results, accompanied by dividend declarations that could further boost buying interest.
InvestData Consulting analysts anticipate mixed sentiments, as investors digest earnings reports, rebalance portfolios, and respond to inflation concerns. However, they see buying opportunities in value stocks amid market corrections and global economic trends.
Investor Takeaway: What to Watch
The market’s upward momentum is fueled by earnings reports and regulatory decisions—investors should watch how corporate results influence sentiment.
High inflation and monetary policies remain key factors affecting investor confidence and portfolio strategies.
Sector rotation and portfolio rebalancing are expected to continue as investors seek undervalued stocks.
Conclusion
With strong corporate earnings, tariff adjustments, and market corrections, investors should stay alert for value opportunities while navigating volatility and inflation risks. The stock market outlook remains positive, with potential for further gains.
Would you like insights on specific stocks to watch in the coming weeks? Let’s discuss!
The Nigerian stock market ended last week on a strong bullish note, driven by increased investor demand for MTN Nigeria and Transcorp Power shares. This surge followed the Nigerian Communications Commission (NCC)’s approval of a 50% tariff hike for telecom services and Transcorp Power’s impressive 2024 financial performance, which boosted investor confidence.
Key Drivers of Market Gains
MTN Nigeria saw significant investor interest following the NCC’s decision to approve a 50% increase in telecom tariffs, boosting revenue expectations for the company.
Transcorp Power surged 8% in a week after reporting strong earnings and announcing a dividend payout, making it one of the top-performing stocks.
Stock Market Performance Overview
✅ The Nigerian Exchange Limited (NGX) All-Share Index (ASI) advanced 1.2% week-on-week (WoW), closing at 103,598.46 points on Friday.
✅ The Year-to-Date (YTD) return rose to 0.7%, reflecting renewed market optimism.
✅ Trading activity remained strong:
• Trading volume increased by 36.3% WoW
• Trading value grew by 28.5% WoW
Sectoral Performance: Winners & Losers
Gaining Sectors:
• Banking Index: +4.1%
• Industrial Goods Index: +0.1%
Declining Sectors:
• Consumer Goods Index: -1.2%
• Insurance Index: -1.2%
• Oil & Gas Index: -0.9%
Top Gainers & Losers of the Week
✅ Biggest Gainer: SCOA Nigeria, soaring 59.68%
✅ Other Top Performer: EUNISELL Interlinked Plc, rising 18.95%
❌ Biggest Loser: John Holt, dropping 18.47%
Analyst Outlook: What’s Next for the Market?
Cordros Research analysts predict that with the full-year 2024 earnings season kicking off, the NGX will be flooded with corporate results, accompanied by dividend declarations that could further boost buying interest.
InvestData Consulting analysts anticipate mixed sentiments, as investors digest earnings reports, rebalance portfolios, and respond to inflation concerns. However, they see buying opportunities in value stocks amid market corrections and global economic trends.
Investor Takeaway: What to Watch
The market’s upward momentum is fueled by earnings reports and regulatory decisions—investors should watch how corporate results influence sentiment.
High inflation and monetary policies remain key factors affecting investor confidence and portfolio strategies.
Sector rotation and portfolio rebalancing are expected to continue as investors seek undervalued stocks.
Conclusion
With strong corporate earnings, tariff adjustments, and market corrections, investors should stay alert for value opportunities while navigating volatility and inflation risks. The stock market outlook remains positive, with potential for further gains.
Would you like insights on specific stocks to watch in the coming weeks? Let’s discuss!
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