Nigerian Equities Surge N252 Billion as Guinness and Tier-1 Banks Drive Market Rally

The Nigerian equities market recorded a notable gain on Wednesday, adding N252.1 billion in market capitalisation, continuing the rebound from the previous trading session. The benchmark All-Share Index (ASI) rose by 0.27%, closing at 145,323.87 points, up from 144,928.36 points on Tuesday, while market capitalisation climbed to N92.63 trillion from N92.376 trillion. This steady growth underscores growing investor confidence in Nigeria’s stock market.

Market momentum was largely driven by share price gains in 30 stocks, with Guinness Nigeria Plc leading the charge. The brewery’s stock surged 10% to N198 per share from N180, reflecting strong investor appetite. Other high-cap stocks, including Tier-1 banks like UBA (+3.1%) and GTCO (+0.7%), as well as Zenith, Access Corp, and cement giant BUACEMENT (+1.3%), also contributed to the bullish market performance.

The market’s Year-to-Date (YTD) and Month-to-Date (MTD) returns continued to show robust growth, standing at +41.2% and +1.3% respectively. Trading activity was particularly vibrant, with the volume of shares traded skyrocketing by 271.27% to 2.25 billion units. E-Transact Plc led the volume chart with 1.847 billion units exchanged, valued at N5.547 billion, highlighting active institutional participation despite a 47.17% drop in total value traded to N20.97 billion.

Sector performance painted a mixed yet cautiously optimistic picture. The Insurance sector posted a modest 0.27% increase, while Consumer Goods advanced by 0.38%. Banking stocks ticked up 0.65%, signaling resilience in the financial sector. Conversely, the Oil & Gas sector saw a decline of 0.47%, with Industrial Goods edging up slightly by 0.47%, reflecting selective sectoral gains amid market optimism.

Overall, the Nigerian equities market continues to display resilience, driven by strategic gains in key blue-chip stocks and increased investor activity. While the surge in traded volume shows heightened engagement, the lower total value traded suggests careful positioning by investors, emphasizing a cautiously optimistic outlook for the weeks ahead.

source: nairametrics