The Nigerian stock market witnessed a powerful resurgence on Monday as investors poured funds into equities ahead of the release of half-year (H1) financial results and expected interim dividend announcements from major banks and blue-chip companies. The renewed buying interest pushed the Nigerian Exchange (NGX) market capitalization higher by N1.86 trillion, signaling growing optimism among investors looking to position themselves for potential corporate rewards.
By the close of trading, the market capitalization climbed from N150.27 trillion to N152.14 trillion, while the NGX All-Share Index (ASI) gained 2,905.05 points to settle at 237,083.28 points. The impressive performance reflects increasing confidence in the market, particularly among investors targeting fundamentally strong companies with a history of rewarding shareholders through dividends and strong earnings growth.
The rally spread across key sectors of the economy, with banking, industrial goods, consumer goods, oil and gas, and premium-listed stocks recording significant gains. Investors appeared particularly attracted to companies expected to post strong half-year performances, reinforcing expectations that corporate earnings will remain resilient despite prevailing economic challenges. The widespread gains suggest that market participants are increasingly betting on the strength of Nigeria’s leading listed firms.
Among the top performers, Cadbury Nigeria and Zichis led the gainers’ chart with a 10 per cent appreciation each. NAHCO, Daar Communications, Ikeja Hotel, and Caverton Offshore Support Group also posted notable gains, reflecting strong demand from investors. Market heavyweights such as Dangote Cement, MTN Nigeria, Aradel Holdings, and Lafarge Africa further boosted the market’s upward momentum, helping sustain one of the strongest rallies seen in recent weeks.
Despite the bullish sentiment, some stocks recorded losses, with Consolidated Hallmark Holdings, FTN General Insurance, and Transcorp Express among the biggest decliners. However, analysts believe the overall market outlook remains positive as investors continue to hunt for undervalued stocks following recent market weakness. They noted that expectations of strong corporate earnings and attractive valuations could keep sentiment upbeat in the coming weeks, although some profit-taking may occur after the sharp surge in prices.
source: The guardian