The Nigerian stock market sustained its bullish momentum on Tuesday, adding N396 billion to market capitalisation as investors renewed interest in large-cap stocks across key sectors. The rally extended positive sentiment from the previous trading session, driven largely by strong performances in the industrial goods and consumer goods sectors.
At the close of trading, the All-Share Index (ASI) of the Nigerian Exchange Limited (NGX) rose by 0.71%, closing at 99,793.71 points compared to 99,088.32 points in the previous session. This pushed the market capitalisation to N56.49 trillion from N56.09 trillion, reflecting increased investor appetite for blue-chip stocks.
The bullish run was primarily supported by buying interest in heavyweight stocks, including Dangote Cement, BUA Cement, and MTN Nigeria. Notably, Dangote Sugar Refinery topped the gainers’ list with a full 10% price appreciation, closing at N56.10 per share.
Other notable gainers included:
The Initiates Plc (TIP): up 9.97% to N12.13
Sovereign Trust Insurance: gained 9.84% to N1.34
Nigerian Enamelware: rose 9.83% to N22.35
University Press Plc (UPL): added 9.82% to N6.15
Cadbury Nigeria: increased 8.90% to N68.55
On the losing side, Ellah Lakes led with a 10% decline, closing at N9.90 per share. Other top laggards were:
Legend Internet: down 10% to N5.31
FTN Cocoa: fell 9.91% to N6.09
Meyer Plc: slipped 9.79% to N17.05
Thomas Wyatt: dropped 9.73% to N3.06
Despite the bullish close, overall market activity witnessed a decline. Total trading volume fell by 47.7%, as investors exchanged 408.62 million shares valued at N7.83 billion in 8,256 deals, compared to 781.82 million units worth N13.97 billion traded in 9,246 deals in the previous session.
The banking sector remained a significant contributor to market turnover, with FBN Holdings, Access Holdings, and United Bank for Africa (UBA) emerging as the most traded stocks by volume.
The Industrial Goods Index recorded the strongest performance, rising by 2.87% week-on-week and posting a remarkable 28.23% year-to-date gain, underscoring investor confidence in the sector.
Other key indices also closed positive:
Premium Board Index: +0.61%
Consumer Goods Index: +0.5%
Top 30 Index: +0.46%
Main Board Index: +0.4%
Insurance Index: +0.25% despite a weekly decline of 4.3%
Market analysts attribute the sustained uptrend to renewed investor confidence following macroeconomic stability signals, including moderated inflation and optimism about second-quarter corporate earnings.
Analysts expect the bullish sentiment to continue in the short term, especially as investors position ahead of half-year earnings reports. However, profit-taking activities may moderate gains in the coming sessions.
With year-to-date returns on the ASI inching closer to record highs, market watchers recommend strategic buying in fundamentally strong stocks, particularly in the industrial goods, banking, and consumer goods sectors.