Investor Interest Drives N350bn Gain in Nigerian Stocks

The Nigerian Exchange Limited (NGX) sustained its positive momentum on Thursday as investors gained N350bn at the close of trading, following renewed interest in banking and industrial stocks.

The market capitalisation of listed equities rose to N94.2tn from N93.85tn recorded the previous day, while the benchmark All-Share Index advanced by 612.81 points, or 0.41 per cent, to close at 148,355.04 points. The performance marked a one-week gain of 1.47 per cent, a four-week gain of 4.45 per cent, and a year-to-date appreciation of 44.14 per cent.

Market data showed improved activity levels as investors traded a total of 432.31 million shares valued at N16.80bn in 23,642 deals. This represented an 11 per cent increase in volume, a 36 per cent rise in turnover, and a three per cent improvement in the number of deals compared to the previous trading session.

A total of 128 listed equities participated in the day’s transactions, ending with 30 gainers and 26 losers.

Secure Electronic Technology topped the gainers’ chart with a 7.06 per cent rise to close at N0.91 per share. It was followed by Sterling Financial Holdings Company, which appreciated 6.49 per cent to end at N8.20 per share. Livestock Feeds gained 5.33 per cent to close at N7.90, while The Initiates Plc advanced by 5.18 per cent to end at N14 per share.

On the losers’ chart, Sunu Assurances Nigeria Plc led with a 9.71 per cent decline to close at N5.21 per share.

Haldane McCall fell 7.53 per cent to N4.05, Daar Communications dipped 6.36 per cent to N1.03, while Sovereign Trust Insurance shed 6.05 per cent to N3.26 per share.

In terms of volume, Consolidated Hallmark Holdings recorded the highest trades for the day, with 40.95 million shares worth N196.59m exchanged by investors. Access Holdings followed with 40.34 million shares valued at N1.04bn, while Guaranty Trust Holding Company and Zenith Bank accounted for 27.57 million shares worth N2.58bn and 25.05 million shares valued at N1.71bn, respectively.

GTCO led the value chart with N2.57bn worth of shares traded, followed closely by Aradel Holdings with N2.52bn. Zenith Bank posted a turnover of N1.71bn, while Nestle Nigeria and MTN Nigeria traded shares valued at N1.33bn and N1.06bn, respectively.

Sectoral performance reflected broad market strength, with most indices closing in the green. The Industrial Index gained 1.44 per cent, and the Premium Index rose by 0.95 per cent, while the Consumer Goods Index advanced by 0.24 per cent.

The Pension and Banking indices also posted mild gains of 0.22 per cent and 0.21 per cent, respectively.

Analysts attributed the market’s rebound to renewed investor appetite for fundamentally strong stocks ahead of the third-quarter earnings season, coupled with increased positioning by institutional investors.

They noted that the recent surge in turnover suggests growing investor confidence, especially as the market continues to post steady year-to-date returns despite macroeconomic headwinds.

With the current momentum, analysts expect the bullish sentiment to persist in the short term as investors continue to take positions in anticipation of corporate earnings releases and dividend announcements.