Nigerian Stock Market Hits Record High as NGX Gains 5.07%, Adds ₦4.32 Trillion in Value

The Nigerian Exchange (NGX) continued its remarkable bullish run, marking its tenth consecutive week of gains. The All-Share Index (ASI) soared by 5.07%, reaching an all-time high of 141,263.05 points. This surge added ₦4.32 trillion to the market’s capitalization, which now stands at ₦89.37 trillion. The rally was largely fueled by strong investor interest in industrial, banking, and growth stocks.

Investor optimism was bolstered by expectations of robust half-year earnings, especially from major banks anticipated to declare interim dividends. Analysts from Cowry Asset Management noted that the rally is likely to persist, given the Nigerian market’s undervaluation relative to African peers, improving macroeconomic indicators, and the appeal of dividend-paying stocks, particularly in the Tier-1 banking space.

Market activity surged across all indicators. The volume of shares traded increased by 31.6% to 4.85 billion, and the transaction value jumped by 33.8% to ₦149.76 billion. Additionally, the number of executed deals rose by 26.4% to 174,267, reflecting heightened participation from institutional and retail investors alike.

The rally was broad-based, with the Industrial Goods Index climbing 10.12%, driven by heavyweights like Dangote Cement, BUA Cement, and Lafarge Africa. The Banking Index rose 3.49%, lifted by strong showings from UBA, Zenith Bank, and Fidelity Bank. Consumer Goods also advanced by 2.72%. However, the Insurance and Oil & Gas sectors dipped slightly, losing 1.22% and 0.48% respectively.

UACN Plc led the week’s gainers with a 115.9% rise, followed by Academy Press and ABC Transport. On the downside, Abbey Mortgage Bank dropped 34.13%, with FTN Cocoa and NAHCO also seeing sharp declines. Meanwhile, Seplat Energy listed 11.5 million additional shares under an employee scheme, and MRS Oil Nigeria was officially delisted. With the NGX delivering a 37.25% year-to-date return, analysts recommend a focus on strong, dividend-yielding stocks in banking, cement, and FMCG sectors.

Source: The sun