The Nigerian Exchange Limited (NGX) has recorded a gain of N4.4 trillion in market capitalization as six stocks delivered an average of 83.2 per cent year-to-date (YTD) returns.
This development reflects strong investor confidence and aligns with the broader market momentum.
Data from the NGX revealed that Eterna Plc, Presco Plc, SCOA Plc, Vitafoam, Chellaram Plc and Honeywell Flour Mills were the top-performing stocks with robust earnings.
The NGX’s market capitalization rose from N62.92 trillion on January 2, 2025 to N67.35 trillion. Similarly, the benchmark index advanced by five percent YTD from 103,180.14 to 107,937.74 points.
Eterna Plc led the rally with a 74.5 percent YTD gain from N24.30 it opened the year to N42.40 on Monday to push its market capitalization to N55.3 billion.
The company attributed its performance to strategic partnerships and product line expansions within the energy sector, which boosted market share and profitability.
Presco Plc also posted strong gains, rising by 65.3 percent from N476 to N785 per share. The company’s market capitalization reached N785 billion, driven by a 93.48 percent revenue growth to N198.16 billion for the 12 months ended December 31, 2024.
Profit after tax surged by 217.33 percent to N104.279 billion from N32.861 billion in the previous year.
SCOA Plc recorded a 67 percent gain, with its share price climbing from N2.06 to N3.44, raising its market capitalization to N2.24 billion.
The company leveraged its diverse operations and strategic initiatives to sustain growth in a challenging economic environment.
Vitafoam Plc also saw its share price rise from N23 to N38.05, representing a 65.4 percent increase. The company’s market capitalization hit N47.6 billion, supported by continuous product innovation and market expansion strategies.
Honeywell Flour Mills and Chellaram Plc posted the highest gains among the six stocks. Honeywell, which is now 71.69 percent owned by Flour Mills of Nigeria Plc, surged by 114 percent with its share price rising from N6.30 to N13.50.
The company’s recent brand relaunch, featuring new packaging and improved product quality, drove a 32 percent stock surge in early January.
Chellaram Plc, on the other hand, recorded a 113 percent gain, with its share price increasing from N3.70 to N7.89. The company’s financial restructuring, which reduced pre-tax losses and improved investor confidence, contributed to the impressive performance.
Commenting on the performance, Moses Igbrude, President of the Independent Shareholders Association of Nigeria, said “The soaring share prices reflect strong financial and operational performance. I urge the companies to sustain the momentum by consolidating on the initiatives that have driven growth.”
David Adonri, Vice President of Highcap Securities Limited, attributed the stock price surges to price-sensitive information.
“The sustainability of the rally will depend on the availability of new, positive market-moving developments that could further drive demand,” he said.
Eric Akinduro, President of the Ibadan Zone Shareholders Association of Nigeria, noted that investor confidence has been driven by strong quarterly results.
“These stocks are not just short-term gainers; they have the potential to deliver even better returns over time,” he added.
Despite Nigeria’s tough business environment, marked by insecurity, infrastructure deficits and declining consumer purchasing power, the six firms have thrived through strategic initiatives and operational resilience.
Analysts believe strong fundamentals and sustained investor confidence will be critical to maintaining the current momentum.
