Nigerian Exchange Expands to N92.25trn after 25-Day Rally
The Nigerian Exchange (NGX) market capitalisation expanded to N92.25 trillion on Wednesday following its 25-day non-stop bullish streak, which has positioned the local bourse among global performers.
Still, the bargain hunting shows no sign it will fizzle out, as corporate earnings releases and dividend announcements attract investors attention to fundamentally strong counters on the NGX.
Trading activities showed there was some sort of sectoral rotation as the insurance index drove the stock market momentum—in an unusual trading pattern—suggesting its steep undervaluation.
Trading data from the Nigerian bourse revealed that the All-Share Index (ASI) higher by 0.70% at 145,813.86 points, lifting the year-to-date (YTD) return to 41.67%.
Stockbrokers said the local bourse’s positive performance was largely driven by sustained buying interest in medium- and large cap stocks, with the insurance sector taking center stage, surging by a remarkable 9.87%.
This rally was fuelled by renewed investor optimism, following recent reforms in the insurance industry. In addition, continued rotation of funds from the fixed income market into the equities market amid improved investor confidence and attractive equity valuations further strengthened market sentiment.
Hence, equity market capitalisation appreciated by ₦518.42 billion to settle at ₦92.25 trillion, also marking a 0.57% increase. Trading activities increased as the total volume and total value of all trades increased by +168.02% and +46.62%, respectively.
According to stockbrokers, approximately 2,698.09 million units valued at ₦32,630.09 million were transacted across 35,137 deals.
In terms of volume, LINKASSURE led the activity chart, accounting for 33.07% of the total volume of trades, followed by STERLINGNG (10.81%), AIICO (5.33%), ZENITHBANK (3.55%), and LASACO (3.44%).
ZENITHBANK emerged as the most traded stock in value terms, accounting for 15.15% of the total value of trades on the exchange.
JAIZBANK, SCOA, HMCALL, LEARNAFRCA, MANSARD, MBENEFIT, MEYER, NEM and GUINNESS topped the advancers’ chart with a price appreciation of 10.00 percent each.
Other gainers include CONHALLPLC with (+9.97%), STERLINGNG (+9.97%), CILEASING (+9.97%), CUSTODIAN (+9.96%), CORNERST (+9.96%) and thirty-nine others.
Twenty-four (24) stocks depreciated, according to trading details obtained from the Nigerian bourse. NGXGROUP and UACN were the top losers, with a price depreciation of -10.00% each, trailed by MULTIVERSE (-9.68%), CHAMPION (-5.31%), NASCON (-4.02%), VFDGROUP (-2.96%), and ZENITHBANK (-1.98%).
Investor sentiment remained broadly upbeat, with market breadth turning positive—53 stocks recorded gains, while 26 posted losses—highlighting the ongoing tug-of-war between bargain hunters and profit-takers.
Sectoral performance was mixed, with 3 out of 6 indexes posting gains. The Insurance (+9.87%) index led the charge, with positive sentiments buoyed by the President’s signing of the insurance reform bill into law yesterday. Its best performers included MANSARD (+10.00%) and NEM (+10.00%).
The Industrial Goods (+2.85%) and Oil and Gas (+0.96%) indices followed suit, driven by buying interests in BUACEMENT (+7.33%) and OANDO (+9.46%), respectively.
Conversely, the Banking (-0.36%) and Consumer Goods (-0.41%) indices closed in the red, pressured by declines in ZENITHBANK (-1.98%) and further sell-offs in INTBREW (-2.17%), respectively. Elsewhere, the Commodity Index closed flat. #Nigerian Exchange Expands to N92.25trn after 25-Day Rally#
