The Nigerian capital market recorded significant gains last week, with sustained investor interest across banking, telecoms, and consumer sectors driving a broad-based rally on the Nigerian Exchange Limited (NGX).
Analysts say this bullish momentum reflects renewed confidence in the equities space, lifting market capitalisation by N3.84tn and pushing the All-Share Index (ASI) to new highs.
Data from NGX showed that total market capitalisation rose to N103.78tn at the close of trading on Friday, while the ASI gained 3.71 per cent week-on-week to settle at 162,298.08 points.
The strong performance saw the equities market surpass the N100tn mark during the week, signaling optimism among investors in fundamentally strong and large-cap stocks.
Capital Market Gains Driven by Banking, Telecoms, and Consumer Stocks
The rally was propelled by heavy trading in financial services, ICT, and consumer goods sectors, which together accounted for the majority of turnover volume and value.
Market analysts attributed the capital market gains to bargain hunting, positive corporate earnings expectations, and improved investor sentiment across key equities.
Trading in heavyweight stocks such as MTN Nigeria, Access Holdings, GTCO, Zenith Bank, and Jaiz Bank underpinned the bullish momentum.
These equities attracted substantial investor demand, contributing meaningfully to the capital market gains observed during the week.
Sectoral Performance Highlights Capital Market Gains
The Financial Services sector remained the dominant driver of market activity, leading the volume chart with 2.651bn shares valued at N35.96bn traded in 93,706 deals.
This accounted for 63.67 per cent of total equity turnover volume and 38.24 per cent of total value.
The Services sector followed with 369.96m shares worth N3.38bn, while ICT equities recorded 297.94m shares valued at N5.73bn.
Notably, trading in Universal Insurance Plc, Linkage Assurance Plc, and Access Holdings Plc dominated the market by volume.
Combined, these equities accounted for 1.261bn shares worth N5.06bn in 13,819 deals, representing 30.28 per cent of turnover volume and 5.38 per cent of total value traded.
Capital Market Gains Reflected in Market Breadth and Investor Confidence
Market breadth remained positive, with 84 equities appreciating in price compared with 73 gainers in the previous week.
Twenty-two stocks declined, while 42 remained unchanged. On the gainers’ chart, Multiverse Mining and Exploration Plc led the rally, followed by McNichols Plc, May & Baker Nigeria Plc, Deap Capital Management & Trust Plc, and Neimeth International Pharmaceuticals Plc.
Conversely, Aluminium Extrusion Industries Plc topped the decliners’ list, alongside Austin Laz & Company Plc, Sovereign Trust Insurance Plc, Ikeja Hotel Plc, and Juli Plc. Other notable losers included Conoil Plc, Learn Africa Plc, SUNU Assurances Nigeria Plc, UPDC Plc, and First HoldCo Plc.
Trading Activity and Exchange-Traded Products Impact on Capital Market Gains
Despite the market’s strong performance, overall trading activity moderated compared with the prior week.
Total shares exchanged amounted to 4.164bn, valued at N94.03bn across 248,254 deals, compared with 7.821bn shares worth N134.47bn traded the previous week.
Daily trading data indicated mixed activity, peaking midweek and tapering toward the end.
Activity in exchange-traded products (ETPs) declined, with 604,668 units valued at N138.52m traded in 1,480 deals, down from 4.67m units worth N316.33m exchanged the prior week.
Analysts noted that despite lower volume in ETPs, the capital market gains in equities reinforced market sentiment and highlighted investor preference for core stocks.
Corporate Actions and Their Role in Capital Market Gains
Corporate developments also supported market gains. First HoldCo Plc listed an additional 2.576bn ordinary shares following a private placement, increasing its total issued and fully paid-up shares to 44.45bn.
Such corporate activities contributed to liquidity and trading opportunities, further boosting capital market gains.
Analysts said the week’s performance underscores sustained investor appetite for equities, driven by fundamentals, strategic portfolio allocation, and expectations of improved corporate earnings.
They observed that maintaining market capitalisation above the N100tn level could attract further inflows and consolidate gains in the coming weeks.
Outlook for Capital Market Gains in the Weeks Ahead
The Nigerian equities market appears poised for continued growth, with investors closely monitoring corporate earnings, macroeconomic developments, and sectoral performance.
Analysts expect that sustained participation in strong fundamentals-driven equities will continue to support capital market gains, even amid moderate trading activity.
As the market consolidates above the N100tn threshold, investors are encouraged to leverage opportunities in banking, telecoms, and consumer sectors while monitoring broader economic indicators.
The capital market gains achieved last week may thus set the stage for a robust start to the first quarter of 2026, signalling renewed confidence in Nigeria’s equities landscape.
