The Nigerian Exchange Limited (NGX) reached a historic milestone this week, with the All-Share Index climbing to 171,727.49 points and total market capitalization hitting N110.23 trillion. This represents a strong 3.8% weekly increase, fueled by renewed investor confidence and positive corporate earnings releases that have invigorated the market.
The Oil & Gas sector emerged as the clear driver of this rally, surging 10.88% over the week. Stocks like Aradel and Seplat saw impressive gains of 15.7% and 10%, respectively, while the momentum extended to other key sectors. The Industrial Goods index rose 4.36%, boosted by Dangote Cement (+7.1%) and WAPCO (+6.4%), and the Banking index added 3.6%, supported by Wema Bank (+6.8%) and FBN Holdings (+4.4%).
Trading activity mirrored the bullish sentiment, with turnover volumes rising to 3.86 billion shares from 3.09 billion the previous week. The value of transactions skyrocketed 98.3% to N128.58 billion, with the Financial Services Industry contributing over half of the total volume. While Chams Holding, Access Holdings, and Universal Insurance led in volume, investors concentrated capital on Presco, GTCO, and Zenith Bank in terms of value.
Market breadth remained overwhelmingly positive, as 71 equities closed in the green against 35 decliners. R.T. Briscoe led the advancers with a remarkable 60.7% increase, followed by Zichis Agro Allied Industries (+60.4%), Abbey Mortgage Bank (+59%), and Union Dicon Salt (+49.1%). On the downside, DEAP Capital Management & Trust (-27.4%) and UH Real Estate Investment Trust (-27%) were the heaviest losers, with the Insurance index being the only major sector to post a decline.
Analysts describe the rally as a reflection of “fragile but positive” macroeconomic stabilization and a shift toward productivity-led growth. Experts from Afrinvest and AIICO Capital expect the market to maintain its bullish trajectory in the short term, driven by ongoing corporate earnings releases and investor optimism, though some profit-taking may occur after the recent surge.
source: punch