The Nigerian Exchange (NGX) extended its bullish run on Wednesday, adding a remarkable N390.32bn to investors’ wealth as strong demand for banking stocks helped sustain positive market sentiment. Despite a noticeable slowdown in trading activity, the market remained close to record highs, reflecting growing investor confidence in the outlook for corporate earnings and the broader economy.
At the close of trading, the NGX All-Share Index settled at 242,366.75 points, while the year-to-date return held firm at an impressive 55.8 per cent. The gain pushed the total market capitalisation to N156.24tn, highlighting the continued wealth creation being recorded on the local bourse as investors reposition their portfolios in anticipation of stronger financial results.
Banking stocks were the major drivers of the market’s positive performance. First HoldCo Plc led the charge with a 10 per cent gain, while Transnational Corporation Plc rose by 6.2 per cent. Stanbic IBTC Holdings Plc advanced 2.4 per cent and Guaranty Trust Holding Company Plc added 1.1 per cent. These gains were enough to offset losses in some consumer and industrial stocks, keeping the overall market in positive territory. Market breadth also remained strong, with 31 gainers compared to 17 decliners, underscoring healthy investor participation.
Among the day’s standout performers were First HoldCo Plc, Thomas Wyatt Nigeria Plc, Legend Internet Plc, Tripple Gee & Company Plc, and McNichols Plc. On the losing side, Trans-Nationwide Express Plc, International Breweries Plc, HMC Allied Plc, DAAR Communications Plc, and Nigerian Exchange Group Plc recorded notable declines. Sectoral performance was mixed, with the Banking Index emerging as the top performer after gaining 2.2 per cent, while the Insurance Index rose 0.7 per cent. However, the Consumer Goods and Industrial Goods indices dipped 0.3 per cent and 0.2 per cent respectively, while the Oil and Gas sector closed flat.
Trading activity, however, painted a more cautious picture as investors appeared to take a breather following the recent market rally. Total trading volume fell by nearly 25 per cent to 453.2 million shares, while transaction value declined by over 44 per cent to N27.2bn across almost 40,000 deals. First HoldCo remained the most actively traded stock, exchanging 78.66 million shares worth N6.19bn. Market analysts believe the resilience of banking stocks will continue to support the market in the coming weeks as investors position for half-year earnings releases and possible interim dividend announcements, with attractive valuations still drawing interest from bargain hunters.
source: punch
