By Kehinde Ibrahim, Lagos
NIGERIA’S stock market maintained its impressive upward trajectory last week, with investors adding N9.342 trillion to the value of listed equities amid sustained buying interest in blue-chip stocks and growing confidence in the country’s capital market outlook.
The rally was further supported by renewed optimism over Nigeria’s improving macroeconomic environment and reports that the Nigerian Exchange, NGX, ranked as the world’s best-performing equity market in U.S. dollar terms, delivering a 67 per cent year-to-date return, according to Bloomberg’s ranking of 92 global stock exchanges. The development reinforced positive investor sentiment, while expectations of stronger corporate earnings continued to drive demand for equities.
The benchmark for All-Share Index, ASI, appreciated by 6.35 per cent during the week, to close at 243,798.76 points, while the market capitalisation rose by N9.342 trillion to settle at N156.445 trillion
Market breadth remained firmly positive, reflecting widespread buying across the market. A total of 60 stocks recorded price appreciation, while 28 declined and 58 closed unchanged.
International Breweries emerged as the week’s best-performing stock, advancing 40 per cent to close at N13.30 per share. R.T. Briscoe followed with a gain of 32.02 per cent to N13.40, while Livestock Feeds appreciated by 28.47 per cent to close at N9.25 per share.
Conversely, McNichols topped the losers’ chart after shedding 28.57 per cent to close at N5.00 per share. Thomas Wyatt Nigeria declined by 11.64 per cent to N2.43, while Geregu Power fell by 10 per cent to close at N825.70 per share.
Trading activity was relatively mixed during the week. Investors traded a total of 3.648 billion shares valued at N220.568 billion in 251,861 deals, compared with 3.821 billion shares worth N154.393 billion exchanged in 258,567 deals in the preceding week.
While trading volume and the number of deals declined, the value of transactions increased significantly, indicating stronger interest in higher-priced and fundamentally sound stocks.
Sectoral analysis showed that the Financial Services Industry remained the dominant driver of market activity, accounting for 2.899 billion shares valued at N147.360 billion and traded in 106,603 deals. The sector contributed 79.48 per cent of the total trading volume and 66.81 per cent of the total value traded during the week.
The services Industry ranked second, recording 164.914 million shares worth N3.615 billion in 16,375 deals, while the Consumer Goods Industry posted a turnover of 157.451 million shares valued at N7.777 billion in 27,950 deals.
Among individual equities, First Holdco, Zenith Bank and Fidelity Bank dominated trading activity, accounting for a combined 1.745 billion shares valued at N121.828 billion in 31,053 deals. The three stocks represented 47.85 per cent of the total equity turnover volume and 55.23 per cent of the market’s total transaction value.
Looking ahead, analysts at Cowry Assets Management Limited expressed optimism that the market’s positive momentum would be sustained, citing favourable macroeconomic conditions, strong institutional participation and increasing foreign investor interest.
The firm noted that the NGX’s global outperformance has further strengthened investor confidence, although it cautioned that intermittent profit-taking could emerge following the market’s sharp gains, particularly in stocks that have recorded substantial price appreciation.
Cowry Assets advised investors to remain focused on fundamentally strong companies with solid earnings prospects, noting that quality stocks are likely to continue attracting capital as confidence in Nigeria’s equity market strengthens.
