Nigerian Stocks Extend Gains by ₦1.45 Trillion Amid Renewed Investor Confidence

Nigerian stocks extend gains, adding ₦1.45trn in market value.

 
The Nigerian equities market continued its bullish momentum on Wednesday, extending gains for another consecutive session as investors renewed interest in blue-chip and mid-tier stocks. Market capitalization rose impressively by ₦1.45 trillion, closing at ₦97.58 trillion, up by 0.50 percent from the previous day’s trading. The performance reflects growing investor optimism, supported by improved market sentiment and confidence in the resilience of Nigeria’s capital market despite macroeconomic headwinds.

Market Capitalisation and Index Performance
The benchmark All-Share Index (ASI) also advanced by 0.50 percent, gaining 2,279.34 points to settle at 153,736.25 points, compared to 151,456.91 points recorded on Tuesday.
This marks one of the strongest single-day rallies in recent weeks and brings the year-to-date (YTD) return to an impressive 49.37 percent, indicating sustained investor confidence and market strength.
Market analysts attribute the consistent gains to renewed buying interests in key stocks across the financial, industrial, and consumer goods sectors. Many investors appear to be positioning ahead of the upcoming earnings season, anticipating strong performance results from tier-one banks and major conglomerates.

Key Drivers of the Market Rally
Several heavyweight stocks played significant roles in lifting the market. Among them were Aso Savings, Skyway Aviation Handling Company (SAHCO), UPDC Real Estate Investment Trust (REIT), Nascon Allied Industries, and Dangote Cement, all posting strong price appreciation.
These stocks benefited from increased demand as investors sought value in companies with solid fundamentals and positive growth outlooks.

• Aso Savings led the gainers’ chart with a 10 percent rise, closing at ₦0.55 per share.
• Skyway Aviation Handling Company (SAHCO) gained 9.99 percent to close at ₦99.05, as investors responded positively to reports of improved operational efficiency and rising cargo handling revenues.
• UPDC REIT appreciated by 8.16 percent, ending the day at ₦7.95 per unit, boosted by growing interest in the real estate and property investment segment.
• Nascon Allied Industries, a subsidiary of Dangote Group, climbed 6.80 percent to ₦110.00, supported by strong fundamentals and consistent dividend payout expectations.
• Dangote Cement, one of Nigeria’s largest listed companies, also rose 6.50 percent to ₦639.00, contributing significantly to the overall market capitalization growth.

According to market experts, the surge in these stocks signals renewed confidence from institutional investors who appear to be rebalancing portfolios ahead of the year’s final trading quarter.

Market Breadth and Losers’ Chart
Market breadth, which measures the number of advancing stocks relative to declining ones, remained positive, with 32 gainers outperforming 31 losers at the close of trading.
However, some stocks experienced mild profit-taking after recent gains.

• The Initiates Plc (TIP) led the losers’ table, declining by 5.73 percent to ₦13.00 per share.
• Legend Internet Technologies followed with a 5.69 percent drop to ₦5.80.
• Royal Exchange Plc shed 4.76 percent to close at ₦2.20.
• Champion Breweries lost 4.49 percent, settling at ₦14.90, while AXA Mansard Insurance dropped 4.19 percent to ₦16.00.

Analysts note that the slight dip in these equities was primarily due to profit-taking by short-term traders who had accumulated positions in recent sessions.

Improved Market Activity and Turnover
Trading activity was robust throughout the day, reflecting higher investor participation and stronger liquidity.

• Total trading volume rose by 7 percent.
• Turnover value increased by 17 percent, and
• Total deals executed grew by 4 percent.

At the end of the trading session, 589.5 million shares valued at ₦24.01 billion were exchanged in 28,485 deals. This compares favorably with 551.92 million shares worth ₦20.54 billion traded in 27,518 deals the previous day.
This uptick underscores renewed vibrancy in the Nigerian Exchange (NGX) as both local and foreign investors gradually return to the equities market, encouraged by improving macroeconomic indicators and moderate inflation projections.

Most Active Stocks: Banks Dominate the Chart
Banking stocks maintained their dominance on the activity chart, highlighting continued investor confidence in the financial sector.

• Fidelity Bank led trading with 94.74 million shares valued at ₦1.87 billion, maintaining its status as one of the most actively traded stocks of the week.
• Guaranty Trust Holding Company (GTCO) followed with 79.5 million shares worth ₦7.4 billion, as investors bet on strong Q3 earnings.
• Access Corporation recorded 59.4 million shares traded at a value of ₦1.5 billion.
• Zenith Bank saw 23.98 million shares worth ₦1.62 billion exchanged, maintaining steady demand from institutional investors.
• Jaiz Bank completed the list with 22.37 million shares valued at ₦96.6 million.

The consistent interest in banking equities reflects market optimism toward Nigeria’s financial sector, especially as banks continue to report improved profitability driven by rising interest margins and digital banking expansion.

Analysts’ Reactions and Market Outlook
Financial analysts have described the market’s sustained rally as a positive indicator of investor confidence in Nigeria’s economic stability and policy reforms.

According to a market strategist with Vetiva Capital, “The renewed momentum shows that investors are gradually looking beyond short-term policy uncertainties. They are focusing on stocks with strong fundamentals, resilient balance sheets, and consistent dividend histories.”

Analysts further project that the equities market could sustain its bullish run in the short term, particularly if the Central Bank maintains a stable monetary policy stance and inflation continues to moderate. However, they advised investors to remain cautious and diversify portfolios to mitigate potential volatility ahead of year-end financial reporting and global market fluctuations.
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Investor Takeaway
The continued rise in market capitalization by over ₦1.45 trillion in a single session reflects a clear message: investor confidence in Nigerian equities is strengthening.
With renewed interest in key sectors like banking, manufacturing, and real estate, many traders see the current rally as a sign of a long-term recovery in the nation’s capital market.
As the year winds down, analysts expect trading activity to intensify as both retail and institutional investors position themselves for dividend announcements, bonus issues, and year-end portfolio adjustments.

Conclusion
The Nigerian stock market’s upward movement on Wednesday underscores the strength of the country’s capital market in the face of economic challenges. With a ₦97.58 trillion market capitalization, rising trading activity, and robust participation from investors, the NGX continues to serve as a source of hope for wealth creation and investment growth. As investor sentiment remains upbeat, analysts predict that the equities market will maintain its positive growth, provided that macroeconomic conditions remain stable and corporate earnings stay strong.


By PrimeLineInfo