Onome Amuge
Nigeria’s equities market continued its bullish momentum midweek, with investors raking in more than N459 billion in paper gains on the back of renewed interest in bellwether stocks including Fidelity Bank, MTN Nigeria, and Aradel Holdings.
The Nigerian Exchange All-Share Index (NGX ASI) climbed 0.50 per cent to close at 145,719.09 points on Wednesday, adding 723.83 basis points, while year-to-date (YTD) returns advanced to 41.6 per cent. The upbeat session lifted the market’s total capitalisation to N92.49 trillion, a gain of N459.43 billion from the previous day.
Despite intermittent bouts of profit-taking, particularly in some recently appreciated consumer and industrial stocks, the overall sentiment remained positive. Analysts attributed the continued market advance to sustained accumulation of large and mid-cap equities ahead of anticipated third-quarter earnings results and the recent moderation in benchmark interest rates.
Among the session’s top performers, FTN Cocoa Processors Plc led the gainers’ chart with an 8.89 per cent appreciation, reflecting renewed buying interest in agribusiness stocks following recent policy signals around local value addition. Livestock Feeds Plc followed, rising 7.43 per cent, while Eterna Plc advanced 6.96 per cent on the back of positive sentiment in the downstream oil and gas sector.
Prestige Assurance Plc gained 4.94 per cent, while Fidelity Bank Plc and MTN Nigeria Communications Plc, two of the session’s key drivers, climbed 4.74 per cent and 4.64 per cent respectively, contributing significantly to the day’s market capitalisation gain. Aradel Holdings, another major bellwether, added 1.58 per cent, helping lift the Oil & Gas Index by 0.59 per cent, the strongest sectoral performer of the day.
The Banking Index also closed higher, rising 0.12 per cent, buoyed by buying interest in Fidelity Bank and Guaranty Trust Holding Company (GTCO). The Commodity Index followed with a 0.31 per cent uptick, reflecting investor optimism in upstream and consumer-linked commodity firms.
In contrast, the Insurance (-0.75%), Industrial Goods (-0.02%), and Consumer Goods (-0.01%) indices dipped marginally, dragged by sell-offs in NEM Insurance (-5.46%), Lafarge Africa (-0.19%), and Dangote Sugar Refinery (-6.10%), respectively.
Market participation was mixed, as the total volume of trades rose 3.61 per cent to 525.73 million shares, while the total value of transactions declined 43.95 per cent to N13.61 billion, indicating a shift toward lower-value trades. Trading activity spanned 25,597 deals, marking a 16.57 per cent drop from the previous session.
In terms of volume, Consolidated Hallmark Holdings Plc (CONHALLPLC) led the chart, accounting for 16.02 per cent of all traded shares, followed by FBN Holdings (7.00%), Jaiz Bank (5.51%), Chams Plc (4.69%), and Ellah Lakes (4.10%).
GTCO was the most traded stock by value, representing 13.24 per cent of the session’s total turnover, underscoring its continued appeal among institutional investors seeking liquidity and consistent dividend yields.
Despite the day’s bullish performance, market breadth, a measure of investor sentiment, closed negative, with 29 gainers against 33 losers. Top laggards included International Breweries (-9.97%), Jaiz Bank (-7.53%), Dangote Sugar (-6.10%), Ellah Lakes (-5.44%), and Universal Insurance (-3.57%), as investors booked profits in previously overbought counters.
“The negative market breadth indicates that while the headline index moved higher, gains were largely concentrated in a few heavyweights. However, sentiment remains broadly constructive given the macroeconomic tailwinds and upcoming earnings season,” noted a report from Cordros Capital.
Analysts say the market’s sustained rally, with YTD returns now above 41 per cent, reflects confidence in Nigeria’s improving investment landscape. The combination of easing inflation pressures, moderating interest rates, and improving foreign exchange liquidity has sparked renewed appetite for equities, particularly among local institutional investors.
Market analysts project that the rally could extend in the short term, driven by corporate earnings expectations and reinvestment of dividend proceeds. However, they caution that intermittent corrections are likely as investors rebalance portfolios.
