Nigerian Stocks Hit 1-Year High as Investor Confidence Soars Amid Stable FX and Strong Earnings
The Nigerian stock market extended its winning streak last week, climbing to a fresh 52-week high as investor confidence surged on the back of stable foreign exchange conditions and renewed optimism in corporate earnings. The NGX All-Share Index (ASI) advanced by 2.37 percent to close at 146,988.04 points, while market capitalization rose to ₦93.30 trillion, translating to a ₦2.16 trillion boost in investor wealth.
Despite lower trading volume, market sentiment remained firmly positive. Data from the Nigerian Exchange Limited (NGX) showed total share volume dropped by 72.79 percent to 2.29 billion units, while transaction value slipped by 21.11 percent to ₦90.28 billion. However, the number of deals jumped by 19.36 percent to 138,177, indicating an uptick in retail and mid-tier investor participation. Analysts say this reflects growing retail confidence in the resilience of the Nigerian market.
The Financial Services sector dominated activity, accounting for 59.28 percent of total market turnover with 1.35 billion shares valued at ₦24.59 billion. The ICT sector followed closely with 182.82 million shares worth ₦7.81 billion, while Agriculture traded 181.50 million shares valued at ₦3.55 billion. Ellah Lakes Plc, Chams Holding Company Plc, and Fidelity Bank Plc led trading by volume, collectively contributing 18.86 percent to total turnover.
Gainers outpaced losers during the week, with 51 equities appreciating against 41 decliners and 55 unchanged. Sovereign Trust Insurance Plc topped the gainers’ list with a 16.73 percent jump to ₦3.21 per share, followed by Omatek Ventures Plc and AXA Mansard Insurance Plc, which rose 12.30 percent and 11.81 percent respectively. On the flip side, LivingTrust Mortgage Bank Plc led the decliners, shedding 14.61 percent to close at ₦5.20 per share, while Neimeth Pharmaceuticals and UH Real Estate Investment Trust also posted notable losses.
Market analysts attributed the continued rally to “steady liquidity, selective positioning, and strong portfolio rebalancing,” according to Cowry Asset Management’s weekly report. The firm projected that the equities market would remain largely stable in the coming week, trading in a mixed pattern as investors weigh monetary policy moves and inflation trends. “The market’s resilience highlights the growing focus on fundamentally strong stocks,” Cowry added, while cautioning that high interest rates could moderate future gains.
source: The sun