Stock Market soars past ₦122trn as Investors gain ₦5.1trn

By Taiye Olayemi

The Nigerian stock market opened the week with a powerful rally on Monday, as investors gained ₦5.1 trillion and market capitalisation surged to ₦122.129 trillion.

Data from the Nigerian Exchange Limited (NGX) showed that market capitalisation rose by 4.36 per cent, while the All-Share Index (ASI) advanced by 7,953.36 points to close at 190,266.44, up from 182,313.08 recorded on Friday.

The rally at the stock market was largely driven by renewed investor interest in high capitalised stocks including ABC Transport, Beta Glass, Ikeja Hotel, Mc Nicholas and Oando, alongside 52 other equities.

Beta Glass, Oando, Ikeja Hotel, Mc Nicholas and ABC Transport topped the gainers’ chart, each appreciating by 10 per cent to close at ₦453.20, ₦44.00, ₦41.80, ₦8.47 and ₦8.25 per share respectively.

On the downside, RT Briscoe led the losers with a 9.99 per cent decline to ₦15.68. Deap Capital followed with a 9.91 per cent drop to ₦7.64, while Caverton Offshore Support Group fell by 9.62 per cent to ₦7.05 per share. Guinea Insurance and Tantalizer also posted losses of 9.27 per cent and 8.11 per cent respectively.

Stock Market breadth remained strong, with 57 gainers against 27 losers, underscoring widespread buying pressure.

Trading activity also strengthened significantly. A total of 1.1 billion shares valued at ₦64 billion were exchanged in 64,821 deals, compared with 936.4 million shares worth ₦52.7 billion traded in 50,068 transactions in the previous session. Access Corporation recorded the highest traded volume at 86.7 million shares.

Stock Market analysts described the surge as one of the most significant rallies recorded this year.

Mr David Adonri, Vice President of Highcap Securities Ltd., said the rally was particularly notable for its breadth and the scale of movements in large-cap stocks.

“We witnessed a very big rally today, perhaps the biggest since the beginning of the year. The Oil and Gas Index appreciated by over four per cent, and most of the stocks that led the gainers’ chart were highly capitalised equities. It was truly a day of massive rally in the market,” he said.

Adonri noted, however, that the immediate catalyst for the surge was not clear, as there were no new listings or major domestic announcements to explain the sharp upswing.

He suggested that external geopolitical developments may have influenced investor sentiment, particularly tensions in the Middle East involving the United States and Iran, alongside concerns about potential disruption in the Strait of Hormuz.

According to him, fears of supply constraints could push crude oil prices higher, prompting investors to take strategic positions in oil-linked and large-cap equities.

He also pointed out that recent inflation data released by the National Bureau of Statistics indicated a rise to about 15 per cent from roughly 14 per cent in December, suggesting that domestic macroeconomic fundamentals were unlikely to have triggered the rally.

“Given the inflation spike, we can reasonably rule that out as a catalyst. The most plausible explanation appears to be external factors,” he added.

With market capitalisation now above the ₦122 trillion mark, the week has begun on a bullish note, signalling renewed investor confidence amid shifting global dynamics.