Nigerian Exchange Expands as Equities Investors Gain N1.75trn
The Nigerian Exchange (NGX) market capitalisation expanded as equities investors gained N1.75 trillion in the just concluded week, pushing key performance indicators to record highs.
The local bourse extended its bullish streak as the benchmark All-Share Index (ASI) surged by 2.35% week-on-week to close at 118,138.22 points, marking another all-time high.
The powerful market performance was driven by renewed investor interest, particularly in the banking, oil & gas, and consumer goods sectors, according to stockbrokers’ reports.
At the start of the week, sentiment on the bourse turned sour after the Central Bank issued a directive restricting banks from paying dividends or making fresh investments in offshore subsidiaries.
In its market update, Cowry Asset Limited said the restrictions specifically targeted banks that had breached the Single Obligor Limit (SOL) or had unresolved forbearance loans dating back to the COVID-19 era.
The announcement triggered panic selling across the financial sector, leading to a sharp dip in market value. However, the selloff was short-lived as deposit money banks reacted, assuring plans are underway to exit the restrictions.
Also ,the apex bank moved to calm nerves by reaffirming the resilience and soundness of Nigeria’s banking sector, which helped restore confidence among investors.
Stockbrokers highlighted that this sparked a strong rebound and propelled the market into positive territory. The resulting gains saw the equities market capitalisation jump by N1.75 trillion, a 2.40% weekly increase, to close at N74.53 trillion.
Consequently, the year-to-date (YTD) return on the ASI improved to 14.78%, reflecting the market’s robust momentum despite macroeconomic and regulatory headwinds.
Cowry Asset Management Limited reported that trading activity mirrored this renewed optimism, with turnover data showing significant increases in both volume and value.
Data from the Nigerian bourse revealed that a total of 3.39 billion shares were exchanged, up by 65.62% from 2.05 billion the previous week, while the total value traded rose 114.52% to N108.72 billion from N50.68 billion.
The number of executed deals also soared to 95,625, representing a 47.79% increase from the previous week’s 64,702 deals—an indication of intensified investor engagement. Across the sectoral front, market performance was broadly bullish, with five out of six sector indices closing positive.
The Oil & Gas Index led the rally with a 5.27% gain, buoyed by strong price movements in SEPLAT and MRS. The Commodity Index followed closely with a 4.37% rise, driven by gains in FTNCocoa and Presco, while the Banking Index advanced by 3.58% as investors regained confidence in lenders like GTCO and Stanbic IBTC.
Other top-performing sectors included insurance (+2.37%) and consumer goods (+2.16%), bolstered by demand for stocks such as Custodian and Ellah Lakes.
However, the only laggard was the Industrial Goods Index, which declined by 36 bps, dragged down by selloffs in John Holt, Enamelware, RTBriscoe, and Dangote Cement. In terms of weekly performance, Ellah Lakes topped the gainers’ chart with 56.8%, followed by LEGEND (+48.3%), BERGER (+41.5%), LivingTrust (+30.8%), and FIDSON (+28.9%).
On the flip side, NNFM led the decliners, dropping 25.5%, with losses also recorded in JOHNHOLT (-18.4%), VFDGROUP (-13.8%), SUNUASSUR (-12.8%), and CONOIL (-12.6%).
Looking ahead, Cowry Research said it remains cautiously optimistic. With over N283 billion worth of NT-bills set to mature in the coming week and no fresh Nigerian Treasury Bills auction scheduled, excess liquidity may spill into the equities space.
In addition, the continuation of the dividend season and expectations of undervalued stocks gaining ground are likely to drive further buying momentum.
Nonetheless, the firm said it continues to advise investors to maintain a disciplined approach, focusing on fundamentally sound, dividend-paying companies amid ongoing policy and macroeconomic uncertainties. CIIN Launches Insurance Week to Boost Awareness
