Nigeria’s equities market extended its bullish run on Thursday, recording a sharp increase in value as renewed investor appetite for fundamentally strong stocks pushed market capitalisation higher by N1.27 trillion.
The rally, which marked the fourth consecutive trading session of gains, reflected growing confidence among institutional and retail investors amid expectations of improved corporate earnings, dividend declarations, and relative macroeconomic stability.
At the close of trading, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) climbed by 1,975.18 points, representing a 1.18 per cent increase to settle at 170,005.36 points. As a result, total market capitalisation advanced from N107.861 trillion to N109.129 trillion, reinforcing the market’s positive outlook for the first quarter of the year.
Market analysts attributed the upswing to strong buying interest in medium- and large-cap stocks, particularly in the energy, telecommunications, industrial goods, and construction sectors.
Renewed buying interest drives equities market gains
The renewed buying interest that powered Thursday’s rally was most evident in bellwether stocks, which recorded significant price appreciation and accounted for a large share of market activity.
Seplat Energy, MTN Nigeria Communications (MTNN), Dangote Cement, Julius Berger Nigeria, and Vitafoam Nigeria were among the top contributors to the market’s upward movement.
These stocks benefited from a combination of positive earnings expectations, attractive valuations, and positioning by investors ahead of the dividend announcement season.
Market watchers note that institutional investors have increasingly returned to high-quality stocks as inflationary pressures show signs of moderation and fixed-income yields stabilise.
According to Imperial Asset Managers Limited, the equities market is likely to sustain its momentum in the near term, despite the possibility of mild profit-taking by short-term traders.
“The market is expected to maintain a positive trajectory in the next session,” the firm said in a note to investors. “While intermittent volatility may arise as some investors lock in gains, strong institutional demand for fundamentally sound stocks ahead of dividend announcements should provide adequate support.”
Broad-based rally lifts market breadth
Market breadth closed strongly positive, underscoring the widespread nature of the rally. Fifty-five stocks advanced, compared to 19 decliners, signalling robust participation across multiple sectors.
Guinea Insurance and Seplat Energy led the gainers’ table, each recording the maximum daily gain of 10 per cent to close at N1.43 and N7,370.00 per share, respectively. R.T. Briscoe followed closely, gaining 9.95 per cent to close at N11.49.
Neimeth International Pharmaceuticals also posted an impressive performance, rising by 9.90 per cent to N11.10, while Zichis Agro-Allied Industries appreciated by 9.89 per cent to close at N6.11 per share.
Analysts say the strong showing in insurance, pharmaceuticals, and agribusiness stocks highlights renewed investor interest in previously undervalued sectors with long-term growth potential.
Losers’ chart reflects profit-taking pressure
Despite the generally positive sentiment, some stocks closed in negative territory, largely due to profit-taking following earlier price gains.
DEAP Capital Management & Trust topped the losers’ chart, declining by 9.62 per cent to close at N6.20 per share. Universal Insurance followed with a 9.43 per cent drop to N1.44, while Haldane McCall lost 9.09 per cent to close at N4.00.
Red Star Express shed 9.04 per cent to settle at N15.60, and UPDC declined by 7.02 per cent to close at N5.30 per share.
Market analysts note that such pullbacks are typical in a rising market and do not necessarily indicate a reversal in overall sentiment.
Trading activity strengthens amid rising confidence
Trading activity improved alongside price movements, reflecting heightened investor engagement. Total trading volume increased by 2.62 per cent to 712.98 million shares, valued at N22.26 billion, and executed across 46,104 deals.
Access Holdings emerged as the most actively traded stock, with 106.63 million shares worth N2.45 billion changing hands. Chams Holding Company followed with 44.50 million shares valued at N201.31 million, while Champion Breweries recorded trades of 44.47 million shares worth N774.31 million.
Universal Insurance, despite closing lower, recorded a trading volume of 34.82 million shares valued at N53.64 million, while DEAP Capital Management & Trust exchanged 22.74 million shares worth N141.91 million.
Outlook: cautious optimism ahead of dividend season
Market strategists believe the current rally is underpinned by improving fundamentals and expectations of strong corporate performance, particularly from blue-chip companies.
With dividend season approaching, many investors are positioning for income-generating stocks, especially in the banking, telecoms, and industrial goods sectors.
However, analysts caution that external factors such as global interest rate movements, oil price volatility, and domestic policy signals could influence short-term market direction.
Still, the prevailing sentiment remains optimistic, with the equities market showing resilience and depth amid Nigeria’s evolving economic landscape.
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