Nigerian stocks soar as investors gain N26.2trn in April rally

Nigeria’s equities market delivered a stunning performance in April, with investors raking in a massive ₦26.2 trillion as bullish sentiment swept across the bourse on the back of rising crude oil prices and robust corporate earnings.

Data released in Lagos showed that market capitalisation surged from ₦129.809 trillion at the start of the month to ₦155.994 trillion, representing a sharp 20.17 per cent increase. Similarly, the All-Share Index climbed by 40,990.03 points, or 20.36 per cent, to close at 242,277.81, underlining the strength of the rally.

Trading activities reflected sustained investor confidence, with 18 out of 20 sessions closing on a positive note during the period.

Vice President of Highcap Securities Ltd., David Adonri, described April as an exceptional month, noting that equities extended their rally with remarkable momentum, largely driven by renewed strength in banking stocks and the tail end of the earnings season.

He expressed optimism that the bullish run could spill into May, citing improving crude oil prices and relative stability in the foreign exchange market.

However, he warned that insecurity and pre-election uncertainties remain potential downside risks.

Market analysts also pointed to structural improvements, including the extension of trading hours from 9:00 a.m. to 4:00 p.m., as a factor expected to deepen participation.

A stockbroker, Tajudeen Olayinka, said the longer trading window, despite initial adjustment challenges, would enhance access for international investors, particularly those operating across different time zones.

In the same vein, National Coordinator of the Independent Shareholders Association of Nigeria, Moses Igbrude, attributed the rally to impressive corporate earnings and liquidity inflows linked to ongoing bank recapitalisation efforts.

He added that funds raised through recapitalisation are expected to find their way into equities, further sustaining market growth.

During the month, investors traded a total of 15.596 billion shares valued at ₦848.972 billion across 1,113,650 deals, reflecting heightened market activity.

Sectoral performance showed that oil and gas stocks led the rally, buoyed by rising global crude oil prices, while banking stocks gained traction on the back of dividend declarations. Industrial goods also contributed to the upward momentum.

Among notable gainers, Seplat Energy surged from ₦9,099.90 to ₦11,495, while Aradel Holdings advanced from ₦1,260 to ₦2,024.

Dangote Cement rose by ₦160 to close at ₦970, and MTN Nigeria gained ₦155 to settle at ₦915. Lafarge Africa also recorded a strong performance, climbing ₦130 to ₦350.

Banking stocks remained upbeat, with Zenith Bank and Guaranty Trust Holding Company closing higher at ₦130.50 and ₦135, respectively.

On the flip side, losses were recorded in a few counters, with Okomu Oil Palm Company declining by ₦15 to ₦1,750, while Conoil dropped by ₦10.40 to ₦194.

Similarly, Oando and Eterna shed ₦3.60 and ₦2.10, respectively.