Nigerian Equity Market Gains N294bn Amid Bullish Trend

The Nigerian equity market continued its bullish momentum on Tuesday, delivering significant gains for investors.

By the close of trading, the market capitalization of the Nigerian Exchange (NGX) surged by N294 billion to settle at N55.65 trillion.

Concurrently, the All-Share Index (ASI) rose by 0.53%, reaching a new high of 98,383.04 basis points.

Surge in Trading Volume

Market participation saw a remarkable increase, with the volume of traded units soaring by 52.49% to 559,608,966 units.

This heightened activity underscored the bullish sentiment that dominated the day’s trading, with the NGX recording 28 gainers compared to 14 losers.

Top Gainers and Losers

Leading the pack of gainers was Dangote Sugar, which appreciated by 10% to close at N42.90 per share. Morison Industries Plc also saw a significant rise, with its stock price increasing by 9.88% to N4.45.

Similarly, the National Salt Company of Nigeria (NASCON) experienced a 9.88% gain, ending the trading session at N37.25 per share.

On the flip side, Sovereign Trust Insurance was among the top losers, shedding 9.52% to close at N0.38 per share. Universal Insurance Plc followed with an 8.33% decline, closing at N0.33, while The Initiate Plc dropped by 7.08% to N1.71.

Sectoral Performance

The bullish activity was reflected across various sectors, with five indexes posting gains. The Banking and Oil and Gas sectors were the standout performers, rising by 2.4% and 1.9%, respectively.

This was largely driven by buy interests in stocks such as United Bank for Africa (UBA), First Bank Holdings, Seplat Energy Plc, and Japaul Gold and Ventures Plc. The Consumer Goods and Insurance indexes also saw gains, increasing by 1.1% and 0.7%, respectively.

Conversely, the Industrial Goods sector was the sole laggard, dipping by 0.20%. Despite this, the overall market sentiment remained positive, buoyed by robust performances in other sectors.

Most Traded Securities

Seplat Energy Plc emerged as the most traded security by value, with N1.60 billion worth of shares exchanged across 51 deals. In terms of volume, Abbey Mortgage Bank led the chart, with 277,527,586 units traded in eight deals.

Outlook

The continued bullish trend in the Nigerian equity market reflects growing investor confidence and optimism.

Analysts suggest that the positive performance could persist if the current market dynamics remain favorable.

However, they also caution that sustained growth will depend on broader economic stability and continued investor interest.

In summary, Tuesday’s trading session was marked by significant gains and heightened trading activity, underscoring the resilience and potential of the Nigerian equity market. As investors capitalize on these bullish trends, the market’s outlook remains cautiously optimistic.