By BizWatch Nigeria
Key Points
- Nigerian equities market gained N3.16 trillion in one trading session.
- Market capitalisation rose above N160 trillion for the first time.
- Banking and industrial stocks drove strong investor demand.
- The NGX All-Share Index advanced by over 5,700 points.
Main Story
The Nigerian equities market extended its bullish momentum on Monday as investors gained N3.162 trillion, pushing the Nigerian Exchange market capitalisation above N160 trillion.
Market capitalisation increased by 2.01 per cent to close at N160.256 trillion, compared with N157.094 trillion recorded in the previous trading session.
The NGX All-Share Index also climbed by 5,709.71 basis points to settle at 250,485.54, reflecting broad-based buying interest across major sectors of the market.
Investor sentiment remained firmly positive, with 59 stocks advancing against 21 decliners during the trading session.
Banking and industrial goods stocks led the rally as investors reacted positively to corporate earnings releases and improving market liquidity.
Major gainers included CHAMS, FTN Cocoa Processors, International Energy Insurance, Livestock Feeds and RT Briscoe, all of which recorded the maximum daily gain of 10 per cent.
Sectoral performance was largely positive. The Banking Index rose by 4.67 per cent, while the Industrial Goods Index advanced by 4.32 per cent.
The Consumer Goods, Insurance and Oil & Gas indices also closed in positive territory, supported by gains in GTCO, Dangote Cement, Nigerian Breweries, AIICO Insurance and Eterna.
On the downside, Prestige Assurance, Sovereign Trust Insurance, University Press, Ellah Lakes and Tantalizers recorded losses.
Trading activity strengthened considerably, with investors exchanging 1.49 billion shares valued at N68.45 billion across 94,834 deals.
Veritas Kapital emerged as the most traded stock by volume after accounting for over 194 million shares traded, while MTN Nigeria led the market by value with transactions worth N12.39 billion.
Analysts attributed the sustained rally to improving investor confidence, stronger liquidity conditions and expectations of better macroeconomic performance.
What’s Being Said
Vice President of Highcap Securities, David Adonri, said improved liquidity and stronger confidence in the economy were supporting demand for equities.
“Renewed confidence, better macroeconomic conditions and stronger liquidity supported demand across major sectors,” Adonri said.
He added that investors were increasingly recognising MTN Nigeria as a strong local investment despite previous negative sentiment surrounding the company.
“Elevated crude prices, improved energy supply and stable conditions are supporting market sentiment,” he added.
What’s Next
Market analysts expect investor attention to remain focused on corporate earnings releases, inflation data and monetary policy developments.
Banking stocks are likely to continue attracting interest as investors assess earnings performance and dividend prospects.
Analysts also believe sustained liquidity in the financial system could continue driving funds into equities if macroeconomic conditions remain relatively stable.
Bottom Line
The Nigerian stock market’s climb above N160 trillion highlights renewed investor optimism and strong liquidity conditions. With banking and industrial stocks leading gains, market momentum could remain positive if earnings performance and economic indicators continue improving.
