The Nigerian Exchange (NGX) closed on a bullish note on Thursday, recording a significant gain of ₦190 billion in market capitalisation, propelled by impressive rallies in Guinness Nigeria Plc, C&I Leasing Plc, and LivingTrust Mortgage Bank Plc.
The surge underscores renewed investor appetite for equities despite concerns over market capitalisation volatility and reduced trading activity.
At the close of trading, the market capitalisation of listed equities rose to ₦89 trillion, while the All-Share Index (ASI) advanced by 291.93 points, or 0.21 per cent, settling at 140,657.29 basis points.
This performance reflects a weekly gain of 1.81 per cent, even though the market posted a four-week loss of 3.57 per cent.
On a brighter note, the market capitalisation has delivered a strong year-to-date return of 36.66 per cent, consolidating its position as one of Africa’s most attractive equities markets.
The rally was spearheaded by Guinness Nigeria Plc, which appreciated 10 per cent to close at ₦143.00 per share, making it the day’s top performer.
The brewer’s surge reflects renewed confidence in consumer goods stocks, especially after recent corporate restructuring moves and stronger demand signals in the beverages segment.
C&I Leasing Plc and LivingTrust Mortgage Bank Plc also impressed, each gaining 10 per cent to close at ₦6.60 and ₦4.62 per share respectively.
Analysts attributed the market capitalisation movements to growing investor interest in financial services and leasing firms, particularly those expected to benefit from government reforms in transportation, mortgage finance, and asset leasing.
Other top gainers included E-Tranzact International, which rose by 9.68 per cent to ₦13.60, and Regal Insurance, which climbed 9.42 per cent to ₦1.51 per share, further broadening the bullish momentum across mid-tier stocks.
On the flip side, the insurance sector faced heavy selloffs.
NEM Insurance recorded the steepest decline, shedding 9.94 per cent to close at ₦28.10 per share.
AXA Mansard Insurance followed with a 4.76 per cent loss, settling at ₦15.99, while Consolidated Hallmark Plc also fell 4.28 per cent to ₦4.03 per share.
Other laggards included Computer Warehouse Group, which dropped 4.71 per cent to ₦16.20, and Ellah Lakes, which fell 4.29 per cent to ₦13.40 per share.
The downturn in these equities suggests selective profit-taking by investors who are rotating capital into higher-performing sectors.
Despite the positive market close, overall trading activity weakened.
Investors exchanged 378.16 million shares valued at ₦12.4 billion in 22,896 deals, representing a 51 per cent drop in volume, a 69 per cent decline in turnover, and an 8 per cent decrease in the number of deals compared to the previous session.
The most traded stock was Japaul Gold and Ventures, with 42.1 million shares exchanged.
It was closely followed by Zenith Bank (27.9 million shares), United Bank for Africa (27.3 million shares), and Access Holdings (25.3 million shares), reaffirming the dominance of banking stocks in market liquidity.
Across the major indices, performance was largely positive.
The Banking Index gained 0.78 per cent, reflecting robust investor interest in tier-1 banking stocks amid expectations of strong third-quarter earnings.
The Consumer Goods Index rose 0.21 per cent, extending its impressive year-to-date growth of 84.08 per cent, thanks to Guinness’ rally and resilience in food and beverage counters.
The Pension Index advanced 0.42 per cent, while the Premium Index and Top 30 Index climbed 0.34 per cent and 0.15 per cent respectively.
These figures indicate a market capitalisation, that remains attractive for institutional and retail investors, even as liquidity constraints persist.
Market analysts believe Thursday’s rally, though tempered by lower activity, highlights sustained investor confidence in blue-chip and fundamentally strong stocks.
“Despite reduced turnover, the positive close indicates that investors are positioning for medium-term gains, especially in companies with resilient earnings and dividend potential,” said a Lagos-based investment analyst with CardinalStone.
Another expert from Meristem Securities noted that the market’s resilience amid global uncertainties and local inflationary pressures suggests that Nigerian equities remain a hedge for investors seeking returns above inflation and currency depreciation.
Several factors contributed to the bullish performance:
Strong Earnings Expectations – With results approaching, investors are targeting companies likely to report robust numbers, particularly in banking and consumer goods.
Sector Diversification – Gains across financial services, consumer goods, and ICT highlight a diversified rally rather than a single-sector push.
Macroeconomic Sentiment – Recent government policy assurances, particularly around forex stability and reforms in critical sectors, have boosted confidence.
Dividend Play – Investors continue to pursue dividend-paying stocks, especially as treasury yields remain pressured.
Looking ahead, analysts expect the NGX to sustain cautious optimism.
While profit-taking may moderate short-term gains, the market is likely to remain supported by:
Anticipation of Q3 corporate earnings,
Government’s fiscal and monetary policy direction, and
Foreign investor re-entry amid improved liquidity in the forex market.
However, they warn that global uncertainties, including crude oil price fluctuations and tighter global financial conditions, could pose risks to sustained rallies.