Stocks add N409bn as rally on Nigerian Exchange extends

By Taiye Olayemi

The Nigerian equities market extended its bullish momentum on Wednesday, with investors gaining N409 billion as renewed buying interest lifted key stocks across major sectors.

Data from Nigerian Exchange Ltd (NGX) showed that market capitalisation rose by 0.40 per cent to close at N102.684 trillion, up from N102.275 trillion at the start of trading.

In the same vein, the All-Share Index advanced by 640.68 points, or 0.40 per cent, to settle at 160,591.76, compared with 159,951.08 recorded in the previous session.

The rally was driven by strong demand for select equities, including Okomu Oil Palm Company, Union Dicon Salt, Seplat Energy, NCR Nigeria, and McNicholas, alongside gains in over 30 other stocks.

Despite the overall market advance, sentiment remained mixed as market breadth closed negative, with 38 stocks declining against 35 gainers.

On the losers’ table, Cadbury Nigeria led the decline, shedding 10 per cent to close at N63 per share. Austinlaz followed with a 9.93 per cent drop to N5.08, while Aluminium Extrusion Industries slipped by 9.91 per cent to N19.55. Haldane McCall fell 9.85 per cent to N4.21, and FTN Cocoa Processors declined by 9.62 per cent to close at N6.01.

Conversely, heavyweight stocks dominated the gainers’ chart. Seplat Energy, Okomu Oil and Union Dicon Salt each appreciated by the maximum 10 per cent, closing at N6,171, N1,204.50 and N8.80 respectively. NCR Nigeria rose by 9.97 per cent to N79.95, while McNicholas gained 9.93 per cent to end the session at N4.76.

Trading activity reflected higher turnover in value and volume, although the number of deals declined. A total of 1.44 billion shares valued at N20.7 billion were exchanged in 49,286 deals, compared with 758.9 million shares worth N19.9 billion traded in 54,212 deals on Tuesday.

Universal Insurance dominated volume activity, accounting for 804.11 million shares, representing 55.82 per cent of total shares traded. Seplat Energy emerged as the most valuable stock, with transactions worth N3.50 billion, equivalent to 16.90 per cent of the market’s total value for the day.

Analysts said the sustained rally reflects selective positioning by investors in fundamentally strong stocks, amid expectations of improved corporate earnings and macroeconomic stability.