Oil and Gas Stocks Surge 17.6% as Nigerian Market Adds N8.7 Trillion in Weekly Capitalisation Gain
The Nigerian equities market recorded a strong week of trading as the oil and gas sector emerged as the biggest gainer on the Nigerian Exchange Limited (NGX), climbing 17.59%. The rally was driven by impressive price increases in key stocks such as Aradel, Japaul Gold, and Seplat, reflecting renewed investor confidence in the energy space.
The banking sector also delivered a solid performance, rising 11.85% as investors continued to accumulate shares in tier-one and high-liquidity banks including ETI, Stanbic IBTC, and FirstHoldco. Consumer goods followed with a 7.76% gain, supported by buying interest in Uniondicon and Guinness, while industrial goods recorded a modest 1.26% increase due to gains in Wapco and Dangote Cement. In contrast, the insurance index slightly dipped by 0.04% following sell-offs in stocks such as Wapic and International Energy Insurance.
Overall market performance remained strongly positive, with the All-Share Index (ASI) advancing 6.56% week-on-week to close at 217,131.54 points. Market capitalisation also rose by 6.6%, adding about N8.67 trillion in value to settle at N139.83 trillion. This marks a sharp improvement compared to the previous week’s gain of N1.36 trillion and pushes the year-to-date return to an impressive 39.53%.
Market activity was equally vibrant, with investors trading 3.59 billion shares worth N195.69 billion across 255,283 deals. The market breadth closed positive at 1.7x, with 61 gainers against 36 losers, indicating broad-based investor participation and sustained buying momentum across multiple sectors.
Looking ahead, market analysts expect the bullish trend to continue in the short term, supported by strong liquidity inflows, positive sentiment, and favourable oil price dynamics. However, experts caution that profit-taking may slow momentum, advising investors to focus on fundamentally strong stocks with solid earnings and dividend potential as global oil trends and domestic economic conditions continue to shape market direction.
source: The Guardian