Nigerian Stocks surge, bullish start delivers N1.78 trillion profit

By Taiye Olayemi

The Nigerian stock market opened the week on a strong footing as investors gained a staggering N1.78 trillion in a single-day rally on Monday, driven by renewed buying interest across several equities.

The market capitalisation rose by 1.99 per cent to close at N91.15 trillion, up from N89.37 trillion recorded last Friday.

Similarly, the All-Share Index (ASI) surged by 2,808.73 points or 1.99 per cent to settle at 144,071.78, reflecting growing investor confidence in the equities market.

The rally was largely spurred by strong demand for stocks such as Lasaco Assurance, Royal Exchange, UPDC, UAC of Nigeria, and Sovereign Trust Insurance, among others.

Lasaco Assurance and Royal Exchange led the pack of gainers, each recording a 10 per cent increase to close at N2.86 and N1.65 per share, respectively. UPDC also gained 10 per cent to close at N5.94 per share. UAC of Nigeria appreciated by 9.97 per cent, ending the session at N97.10 per share, while Sovereign Trust Insurance rose by 9.94 per cent to N1.88 per share.

However, the market was not without losers. Academy Press and Transcorp Power both declined by 10 per cent to close at N9.90 and N288 per share, respectively. John Holt lost 9.59 per cent to close at N6.60 per share, Total Nigeria shed 9.22 per cent to end at N6.40 per share, while Ecobank Transnational Incorporated fell by 9.21 per cent to close at N34 per share.

Despite the bullish momentum, trading volume declined compared to the previous session. Investors exchanged 811.09 million shares valued at N19.47 billion in 35,963 transactions, lower than Friday’s 1.08 billion shares worth N26.85 billion traded in 34,488 deals.

First City Monument Bank emerged as the most traded equity for the day, with 84.95 million shares worth N979.42 million crossing the floor. It was followed by Universal Insurance, which posted 82.51 million shares valued at N61.68 million. Fidelity Bank recorded 45.43 million shares worth N955.6 million, while AIICO Insurance and Veritas Kapital Assurance accounted for 40.15 million shares valued at N94.3 million and 39.77 million shares worth N60.26 million, respectively.

Commenting on the market performance, Mr Aruna Kebira, Managing Director of Globalview Capital Ltd., described the gains as a reflection of growing market maturity. He attributed the positive momentum to renewed confidence from informed investors, increased pension fund investments, a stable exchange rate, and declining inflation levels.

According to Kebira, macroeconomic factors such as Nigeria meeting its OPEC production quota, improved foreign reserves, and stronger-than-expected second-quarter corporate earnings have significantly contributed to the bullish outlook.

“The steady rise of the ASI and market cap reflects strong buying interest in equities,” he said. “Penny stocks usually lead market moves but also drive retreats, especially as many lack strong fundamentals. Many declined last week due to month-end exits and weekend uncertainty among short-term traders. Since no negative news emerged over the weekend, exited positions were re-entered, sparking the bullish momentum.”