Nigerian Equities Market Extends Bullish Run as Investors Anticipate Strong Q3 Earnings

The Nigerian equities market continued its bullish momentum on Wednesday, driven by renewed investor optimism ahead of third-quarter earnings reports. The All-Share Index (ASI) gained 0.50 percent to close at 145,719.09 basis points, reflecting steady confidence among investors despite ongoing macroeconomic challenges. Month-to-Date and Year-to-Date returns now stand at 2.1 percent and an impressive 41.58 percent, respectively.

Investor enthusiasm translated into significant market gains, with capitalization rising by N459.43 billion to settle at N92.49 trillion. Analysts attribute the rally to increased positioning in fundamentally strong stocks and expectations of positive corporate earnings. Blue-chip firms such as MTN Nigeria, Fidelity Bank, and Zenith Bank led the charge, offsetting losses recorded by Dangote Sugar, SUNU Assurance, and LivingTrust Mortgage Bank.

Sectoral performance was mixed but largely positive. The Oil & Gas, Banking, and Commodity sectors advanced by 0.59 percent, 0.12 percent, and 0.31 percent, respectively, buoyed by rising demand for financial and energy equities. However, the Insurance, Consumer Goods, and Industrial Goods sectors dipped slightly, recording marginal declines of 0.75 percent, 0.01 percent, and 0.02 percent, respectively, as traders engaged in profit-taking ahead of upcoming results.

Despite the market’s upward close, overall sentiment was slightly bearish, with 33 laggards outnumbering 29 gainers. Top-performing stocks included FTN Cocoa Processor, Livestock Feeds, Eterna, Prestige Insurance, and Fidelity Bank. On the flip side, Industrial Medical Gases, LivingTrust Mortgage Bank, Sunu Assurance, Chams, and Dangote Sugar led the decliners’ chart. Trading activity showed a mixed pattern as transaction volume rose by 3.61 percent to 525.73 million units, while trade value fell by 43.95 percent to N13.61 billion across 25,597 deals.

FBN Holdings emerged as the day’s most traded stock by volume, recording 36.54 million units, while Guaranty Trust Holding Company (GTCO) led in transaction value with N1.80 billion worth of trades. Analysts say the sustained market uptrend reflects investors’ confidence in the long-term stability of the Nigerian Exchange (NGX), supported by attractive valuations, solid liquidity, and anticipation of strong dividend payouts in the months ahead.

source: tribune