Onome Amuge
Nigeria’s equities market edged higher on Thursday, buoyed by strong performances from consumer-facing stocks such as Guinness Nigeria and Nigerian Breweries, even as trading volumes thinned and banking shares lagged.
The benchmark NGX All-Share Index (ASI) rose 0.16 per cent to close at 142,263.07 points, lifting the year-to-date return to 38.22 per cent. Market capitalisation also advanced by N143.51 billion to break back above the N90 trillion threshold, last reached in August.
The day’s rally was anchored by sustained investor appetite for Guinness Nigeria, which lifted the daily maximum of 10 per cent to N176 per share. The brewer’s rise follows renewed optimism over consumer goods earnings as stable exchange rates and a gradual easing of inflationary pressures boost spending power. Nigerian Breweries also added 1.71 per cent, extending a modest run of gains.
Other notable gainers included Dangote Sugar Refinery, up 3.33 per cent, and Guaranty Trust Holding Company (GTCO), which climbed 0.74 per cent. Smaller-cap stocks Eunisell Interlinked and Regal Insurance advanced by 9.89 per cent and 9.82 per cent respectively, while Thomas Wyatt and McNichols Consolidated also posted gains.
The breadth of the market was positive, with 30 gainers against 20 losers. However, overall activity weakened: total trading volume dropped 67.6 per cent to 325.11 million shares, while value fell 65.9 per cent to N8.42 billion across 22,779 deals.
On a sectoral basis, Consumer Goods rose 0.75 per cent, buoyed by the strength of brewers and sugar refiners. Oil and Gas added 0.28 per cent, supported by selective interest in downstream names, while Industrial and Commodity indices edged higher by 0.01 per cent and 0.16 per cent respectively.
In contrast, the Banking index fell 0.23 per cent as investors pared back positions in tier-one lenders, while Insurance slumped 1.07 per cent, dragged lower by Consolidated Hallmark Insurance and Coronation Insurance. Consolidated Hallmark shed 7.95 per cent to close at N4.02, while Omatek Ventures and The Initiates Plc also featured among the top losers.
Despite the declines, the banking sector dominated value turnover. Zenith Bank led the chart with N1.60 billion in transactions from 24 million shares traded, followed by Aradel Holdings at N1.1 billion and Access Holdings at N1.0 billion. Access was also the most traded by volume, with 37 million shares changing hands.
The outperformance of Guinness Nigeria was a focal point for traders. The brewer’s rally underscores renewed investor optimism in the consumer goods sector after a turbulent 2024, when currency volatility and rising inflation eroded margins. Analysts observed that cost controls, coupled with a more stable macroeconomic environment, are beginning to restore confidence in select fast-moving consumer goods companies.
Dangote Sugar’s advance also signalled investor belief that easing inflationary pressure could support demand in staple commodities, while Nigerian Breweries’ modest gain marked continued investor rotation into defensive consumer stocks.
The uptick in the ASI comes against a backdrop of declining activity levels, with turnover sharply lower than in prior sessions. Analysts say the dip in trading value reflects investor caution ahead of upcoming macroeconomic data releases and possible monetary policy adjustments.
The return of market capitalisation above N90 trillion has been welcomed as a symbolic boost. Year-to-date, the NGX has now gained more than 38 per cent, one of the strongest performances among frontier and emerging markets.
Looking forward, market watchers say performance will hinge on corporate earnings updates, particularly from the consumer and banking sectors, as well as policy signals from the Central Bank of Nigeria. While the disinflation trend reported in recent weeks has improved sentiment, analysts caution that structural risks, from security challenges in food-producing regions to volatility in oil revenues, could still weigh on investor confidence.
