Blue-Chip Stocks Drive NGX Market Capitalisation Up by N985 Billion Amid Renewed Investor Confidence

Renewed investor interest in Nigeria’s blue-chip stocks lifted the nation’s equities market capitalisation by a whopping N985 billion last week, signaling a strong return of confidence after weeks of cautious trading. The NGX All-Share Index (ASI) gained 1.13 percent, closing at 140,545.69 points, up from 138,980.01 points recorded the previous week, reflecting broad-based optimism across both institutional and retail investors.

Market activity mirrored the upbeat sentiment, with the number of executed deals rising 12.8 percent to 132,841 transactions. Trade volume increased slightly by 2.36 percent to 3.19 billion units, while the value of traded equities jumped 10.54 percent to N99.70 billion. Analysts attribute this surge to growing liquidity and a strong appetite for fundamentally sound, income-generating large-cap stocks.

All six sectoral indices tracked by the NGX ended the week in positive territory, led by the Commodities Index, which surged 2.73 percent on sustained demand for commodity-linked stocks. The Insurance Index rose 2.45 percent, while the Oil & Gas Index advanced 2.38 percent, buoyed by optimism in downstream plays amid firming global oil prices. Banking, industrial goods, and consumer goods indices also recorded notable gains, reinforcing the market-wide rally.

On the individual stock front, E-Tranzact topped the gainers’ list with a 37.8 percent jump, followed by NCR Nigeria at 31.6 percent. Regal Insurance, Chellarams, and John Holt also posted double-digit gains. Meanwhile, Union Dicon Salt and Eterna Plc were the week’s biggest losers, shedding 19.0 percent and 18.4 percent, respectively, highlighting uneven performance across select stocks.

Looking ahead, analysts at Cowry Asset Management projected a cautiously bullish outlook for the NGX, citing sustained investor interest in key bellwether stocks and improving liquidity as momentum drivers. However, they warned that continued market gains will depend on macroeconomic stability, policy clarity, and global investor risk appetite, emphasizing that while optimism is returning, selective and uneven performance may persist in the coming weeks.

source: the guardian