Nigeria’s equities market delivered one of its strongest weekly performances in recent months, with investors recording an estimated ₦6.8 trillion gain over five trading sessions, as Pension Fund Administrators (PFAs) significantly increased their exposure to listed stocks.
The bullish run, which extended through the week ended Friday, reflected renewed investor optimism and heightened institutional participation on the Nigerian Exchange.
At the close of trading, the benchmark Nigerian Exchange All-Share Index (ASI) climbed 6.16 per cent week-on-week to settle at 182,313.08 points. The surge underscores sustained buying momentum and strengthened confidence across major sectors of the market.
Market Capitalisation Swells by ₦6.79 Trillion
In line with the rally in the ASI, total market capitalisation rose from ₦110.23 trillion in the preceding week to ₦117.03 trillion, translating to a net value appreciation of approximately ₦6.79 trillion. The upward trajectory also pushed the year-to-date (YtD) return to 17.76 per cent, reinforcing the Nigerian bourse’s bullish stance since the start of the year.
Market breadth remained firmly positive, with 79 stocks closing in the green compared to 27 decliners, yielding a breadth ratio of 2.93x. The broad participation suggests that buying interest was not isolated to a few heavyweights but spread across multiple counters.
Pension Reform Catalyses Buying Pressure
Analysts at Cowry Asset Management Limited attributed the sustained rally to the recent upward adjustment of equity investment thresholds by the National Pension Commission (PenCom).
The policy revision allows PFAs to allocate a larger share of managed pension assets into equities across sectors, thereby unlocking additional liquidity into the capital market. According to Cowry, the reform has materially strengthened institutional participation, particularly in fundamentally sound stocks, helping to sustain upward price momentum.
Trading Activity Jumps Sharply
Market activity metrics also reflected heightened participation. Compared to the prior week:
- Total deals advanced by 19.35 per cent
- Trading volume expanded by 20.50 per cent
- Trading value surged by 50.04 per cent
By Friday’s close, investors had exchanged 4.65 billion shares worth ₦193.53 billion across 287,158 deals, underscoring improved liquidity conditions and stronger risk appetite.
Sectoral Performance: Oil & Gas Leads the Charge
Sectoral indices largely tracked the broader bullish trend. The Oil and Gas Index posted the strongest performance, climbing 11.40 per cent. The Commodities Index followed with an 8.42 per cent gain, while the Industrial Goods Index advanced 7.09 per cent. The Banking and Consumer Goods indices appreciated by 5.84 per cent and 2.95 per cent respectively, while the Insurance Index edged up 0.65 per cent.
Top Gainers and Decliners
On the gainers’ table, ZICHIS recorded the sharpest increase with a 60.7 per cent rise. UNIONDICON followed closely with 60.2 per cent, while DAARCOMM gained 55.3 per cent. FTGINSURE and JOHNHOLT appreciated by 50.0 per cent and 45.2 per cent respectively, driven largely by strong accumulation interest.
On the flip side, ABBEYBDS led the decliners with a 26.4 per cent drop. SOVRENINS shed 17.2 per cent, ETI declined 13.3 per cent, while SKYAVN and AUSTINLAZ lost 11.6 per cent and 11.1 per cent respectively, reflecting profit-taking and sustained selling pressure.
Outlook
Cowry Asset Management projected that near-term sentiment would remain constructive, supported by improved liquidity following the pension reform. The firm, however, cautioned that intermittent profit-taking could emerge after the sharp rally, potentially triggering mild pullbacks.
Ultimately, sustained institutional participation and sector rotation dynamics will determine whether the upward trajectory is maintained. For now, liquidity-driven demand continues to underpin market strength.
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