Nigerian Stock Market surges as investors pocket massive N905bn gain

The Nigerian equities market extended its bullish run on Monday as investors gained N905 billion amid sustained buying interest in large and mid-cap stocks across major sectors of the market.

Market capitalisation advanced by 0.57 per cent to close at N160.982 trillion, compared to N160.077 trillion recorded at the close of trading on Friday.

Similarly, the All-Share Index (ASI) appreciated by 1,412.65 basis points to settle at 251,125.02, up from 249,712.37 posted in the previous session, reflecting renewed investor confidence and continued positive market sentiment.

The latest rally was largely driven by strong demand for shares in companies such as Airtel Africa, International Energy Insurance, Sovereign Trust Insurance, Caverton Offshore Support Group and VFD Group, alongside gains recorded in over 30 other equities.

The market’s year-to-date return also strengthened to 61.38 per cent, underscoring the sustained momentum that has characterised the equities market in recent months.

Analysts attributed the positive performance to growing investor appetite for fundamentally strong stocks, improved corporate earnings expectations and continued portfolio repositioning by institutional investors.

Market breadth closed in positive territory with 35 gainers against 32 losers, indicating a generally bullish trading session despite pockets of profit-taking in some counters.

Airtel Africa emerged as the best-performing stock for the day after its share price surged by 10 per cent to close at N3,655.70 per share.

International Energy Insurance followed with a 9.68 per cent gain to settle at N3.74, while Sovereign Trust Insurance appreciated by 9.65 per cent to close at N2.50 per share.

Caverton Offshore Support Group also recorded a 9.63 per cent increase to close at N7.40, while VFD Group gained 9.55 per cent to settle at N10.90 per share.

On the flip side, McNichols led the losers’ chart after shedding 10 per cent to close at N7.20 per share.

The Initiates Plc declined by 9.91 per cent to close at N30.45, while Learn Africa lost 9.69 per cent to settle at N11.65 per share.

Zichis Agro Allied Industries dropped by 7.93 per cent to close at N30.98, while May & Baker Nigeria Plc depreciated by 6.60 per cent to end the session at N46.70 per share.

Despite the positive market performance, trading activity weakened compared to the previous session as total volume traded declined by 11.58 per cent.

Investors exchanged 629.42 million shares valued at N40.91 billion in 82,434 deals during the trading session.

Access Holdings Plc recorded the highest trading volume with 61.29 million shares traded, representing 9.74 per cent of total market turnover.

Meanwhile, Aradel Holdings dominated the value chart with transactions worth N11.99 billion, accounting for 29.30 per cent of the day’s total traded value.

Market watchers say the sustained rally reflects improving investor confidence in the equities market amid expectations of stronger corporate performances and continued economic reforms expected to support market stability in the coming months.