The Nigerian Exchange Limited (NGX) extended its bullish momentum on Tuesday, recording another impressive upswing as investor confidence in insurance and banking stocks lifted the market with a fresh ₦254bn gain.
The rally followed Monday’s positive performance, with analysts describing the current uptrend as a reflection of renewed optimism in financial services equities despite broader caution among market participants.
At the close of trading, the market capitalisation of listed equities rose to ₦88.50tn, up from ₦88.25tn recorded the previous session.
The All-Share Index (ASI) gained 401.36 points, or 0.29%, to close at 139,796.11 points.
Although trading activity recorded a 30% decline in turnover and deal volume compared with Monday, market breadth remained strong.
Out of 127 stocks traded, 36 closed higher, 19 declined, while 72 ended flat.
Regency Alliance Insurance emerged as the day’s best performer, appreciating by 10% to close at ₦1.43 per share.
Other strong performers included MeCure Industries, which rose 9.92% to ₦21.60; E-Tranzact International, up 9.73% to ₦12.40; Daar Communications, gaining 9.57% to ₦1.03; and Deap Capital, which increased by 9.52% to ₦1.84.
On the flip side, Unilever Nigeria led the losers’ chart, falling 9.79% to ₦63.15 per share.
FTN Cocoa Processors dipped 9.40% to ₦5.40, Ellah Lakes dropped 8.76% to ₦13.02, Linkage Assurance shed 6.85% to ₦2.04, while Berger Paints lost 6.33% to close at ₦35.50 per share.
Financial services stocks dominated activity on the exchange.
FCMB Group led trading by volume, accounting for 202.49 million shares worth ₦2.09bn.
It was followed by Universal Insurance with 63.14 million shares valued at ₦79.39m, while FBN Holdings transacted 44.23 million units worth ₦1.34bn.
Regency Alliance Insurance and Access Holdings also witnessed significant turnover with 30.98 million and 26.12 million shares traded, respectively.
By value, GTCO topped the chart with ₦1.50bn, ahead of FBN Holdings at ₦1.34bn, MTN Nigeria with ₦800.11m, and AccessCorp at ₦676.41m.
Performance across the indices was broadly positive.
The NGX Top 30 Index rose 0.32%, while the NGX Insurance Index led with a 0.98% uptick.
The NGX Industrial Index gained 0.85%, the NGX Banking Index climbed 0.43%, and the NGX Premium Index advanced 0.47%.
Similarly, the NGX Consumer Goods Index closed with a 0.28% increase.
So far this week, the exchange has delivered a marginal gain of 0.05%, despite a four-week cumulative decline of 4.17%. Year-to-date, however, the ASI has returned a robust 35.82%, underscoring the resilience of Nigeria’s equity market.
Market analysts attributed the positive sentiment to sustained demand in low- and mid-capitalisation stocks, particularly in the insurance and banking subsectors.
They noted that while investors remain cautious due to prevailing economic uncertainties, bargain hunting and sector-specific optimism continue to drive momentum.
Speaking with financial correspondents, Lagos-based analyst Chika Okwu described the rally as “a sign of selective investor confidence in industries that show relative resilience and earnings potential despite macroeconomic headwinds.”
Another capital market expert, Aisha Sule, explained that insurance stocks are gaining traction due to ongoing reforms in the sector and the push for stronger capital adequacy.
“The banking sector is also benefiting from renewed optimism ahead of third-quarter earnings releases, which many investors expect will remain strong despite liquidity challenges,” she added.
The NGX began the week with a ₦263bn gain on Monday, supported by investor interest in consumer goods and insurance stocks such as PZ Cussons Nigeria and University Press Plc.
With two consecutive sessions of gains, analysts believe market sentiment could remain upbeat if macroeconomic indicators — including inflation trends and exchange rate stability — show signs of improvement.
“Short-term rallies are likely to continue, but investors must remain cautious of profit-taking activities, especially in volatile sectors,” said Sule.
Despite the recent volatility in global markets, Nigeria’s equities have remained attractive to both retail and institutional investors, supported by strong corporate earnings and the prospect of dividend payouts in select counters.