This week’s Market Watch opened with a thought-provoking question: can someone be both a referee and a player? Host Frank was joined by market experts Idika Aja and Muktar Mohammed to discuss the latest happenings on the Nigerian Exchange (NGX). October kicked off strongly, with the All-Share Index closing at 143,504 points and market capitalisation at N91.15 trillion. Top gainers included PZ, Champion Breweries, ICO, Wema Bank, and USEN, all rising by at least 10%. Idika noted that Wema Bank has led the banking sector this year, recording a 245 per cent surge in share price.
Frank then raised a key question about whether regulators should participate in markets they oversee. Muktar explained that while the CBN has always been active in the market, its participation could enhance stability and integrity. However, he cautioned that such involvement might also influence economic fundamentals. Idika added that investor confidence depends on alignment between monetary policy—especially the MPR—and fixed-income expectations.
The conversation turned to SWOOTs, or Stocks Worth Over One Trillion Naira. Frank noted there are 22 such companies, controlling N78.92 trillion in market value and adding N225 billion in two trading days. Idika listed BUA Foods, Fidelity Bank, GTCO, UBA, Presco, Seplat, Geregu, Transcorp Power, and International Breweries as key players shaping NGX performance.
Muktar, however, cautioned that some SWOOTs face liquidity challenges despite strong fundamentals, making entry and exit difficult. Idika advised investors to prioritise liquidity, growth, stability, valuation, and fundamentals. Muktar added that great investors identify opportunities before the crowd and learn from market history. Idika concluded that many investors are now taking long-term positions in strong stocks to secure their retirement.
Watch the full episode of Market Watch on Nairametrics TV to dive deeper into this week’s market movers, expert insights, and trends shaping Nigeria’s capital market.
