Nigeria’s equities market extended its bullish momentum at the start of the second trading week of February, recording a massive wealth creation for investors as renewed demand for large and medium capitalisation stocks pushed total market capitalisation above the ₦111 trillion threshold.
Trading on Monday closed with a gain of ₦1.424 trillion, lifting the total value of listed equities on the Nigerian Exchange Limited (NGX) to ₦111.659 trillion, one of the strongest single-day performances in recent months.
The rally marked the sixth consecutive positive session, reinforcing growing investor confidence in selected sectors of the economy.
Market analysts attribute the sustained upward movement to a combination of improving corporate earnings expectations, sector-specific optimism, and portfolio rebalancing by institutional investors seeking inflation-hedged returns.
Nigerian stock market rallies as buying pressure intensifies
The Nigerian stock market recorded broad-based gains, with the NGX All-Share Index (ASI) rising by 2,218.73 points, representing a 1.29 per cent increase, to close at 173,946.22 points.
This sharp uptick underscores the strength of buying interest that dominated the session, particularly in industrial, aviation, oil and gas, and select consumer-linked stocks.
Stocks such as Dangote Cement, Aradel Holdings, Nigerian Aviation Handling Company (NAHCO), Skyway Aviation Handling Company, and Chemical and Allied Products (CAP) were among the major drivers of the rally, benefiting from sustained accumulation by both domestic and foreign investors.
Market watchers note that the renewed interest in these counters reflects expectations of stronger earnings performance, operational expansion, and relative resilience amid ongoing macroeconomic adjustments.
Sector sentiment remains selective
In its post-market commentary, United Capital Plc projected that the bullish trend in the Nigerian stock market could persist in the near term, albeit in a more selective manner.
According to the investment firm, sectors expected to continue attracting investor attention include Oil and Gas, Industrial Goods, ICT, Banking, and Breweries.
However, the firm cautioned that sentiment in Consumer Goods and Insurance stocks may remain subdued, as rising operating costs and margin pressures continue to weigh on performance in those sectors.
United Capital also warned that profit-taking activities, following the recent surge in prices, could moderate the pace of further gains.
Despite this, analysts agree that the overall market structure remains positive, supported by strong market breadth and sustained liquidity flows.
Market breadth confirms strong momentum
Trading data showed that market breadth was decisively bullish, with 58 stocks advancing compared to 23 decliners, indicating widespread participation in the rally.
Chemical and Allied Products (CAP), Daar Communications, and May & Baker Nigeria led the gainers’ chart, each recording the maximum daily increase of 10 per cent to close at ₦90.20, ₦2.09, and ₦43.45 respectively.
Other notable gainers included R.T. Briscoe (Nigeria), which advanced by 9.98 per cent to ₦13.89, while Zichis Agro Allied Industry, NAHCO, and DEAP Capital Management & Trust each rose by 9.97 per cent, reflecting strong speculative and value-driven interest.
On the flip side, Eunisell Interlinked topped the losers’ table after shedding 9.98 per cent to close at ₦134.85 per share. Tripple Gee & Company declined by 8.90 per cent, while Abbey Mortgage Bank dropped 8.03 per cent, highlighting pockets of sell-offs in stocks that had recently rallied or faced weak fundamentals.
Trading volume dips despite price surge
Interestingly, the strong rise in prices was not matched by higher trading activity. Total volume traded declined by 18.72 per cent to 775.18 million shares, valued at ₦27.92 billion, across 65,960 deals.
This divergence suggests that the rally was driven more by price appreciation in heavyweight stocks than by broad retail participation.
Market analysts say this pattern is consistent with institutional-led rallies, where relatively lower volumes can still generate substantial capitalisation gains.
Access Holdings emerged as the most actively traded stock by volume, with 67.14 million shares exchanged worth ₦1.55 billion. Zenith Bank followed with 46.24 million shares valued at ₦3.43 billion, underscoring continued investor confidence in Tier-1 banking stocks.
Other actively traded equities included Secure Electronic Technology, Veritas Kapital Assurance, and Mutual Benefits Assurance, reflecting ongoing interest in low-priced and mid-cap stocks.
What this means for investors
The latest performance reinforces the Nigerian stock market’s role as a key destination for capital in an environment marked by currency adjustments, elevated inflation, and tight monetary conditions.
With fixed-income yields fluctuating and real returns under pressure, equities—particularly fundamentally strong stocks—are increasingly viewed as a hedge against inflation.
Analysts advise investors to remain disciplined, focusing on companies with solid balance sheets, sustainable earnings, and clear growth strategies, while avoiding speculative excesses.
As earnings season unfolds and macroeconomic signals become clearer, market direction is expected to remain positive but uneven, rewarding informed and selective positioning.
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