The Nigerian Exchange Limited (NGX) market capitalisation surged past N65 trillion on Wednesday on strong price appreciation.
Investors pocketed N322 billion in gains as the NGX All-Share Index (ASI) rose by 536.54 points or 0.51% gain to close at 105,324.89 points. Market capitalisation advanced by N332 billion to settle at N65.222 trillion as medium- and large-cap stocks drove positive sentiment.
Strong performances from FBNH, Eterna, NASCON Allied Industries, GTCO and Africa Prudential bolstered the rally, reinforcing confidence in banking and financial services stocks.
Analysts expect the uptrend to continue with earnings season acting as a catalyst for sustained positive sentiment.
“In the subsequent trading session, we expect the bullish run to persist from sustained positive sentiment amid the earnings season,” analysts at Afrinvest Limited said.
The rally was further supported by broad-based buying interest with investor sentiment measured by market breadth remaining positive.
A total of 37 stocks closed in the green during the trading session of Wednesday while 21 closed in the red.
Guinea Insurance led gainers with a 10% gain to close at 88 kobo a share. Eterna followed closely with a 9.96% increase to close at N30.35 while Cadbury Nigeria gained 9.95% to N24.30.
International Energy Insurance climbed 9.91% to N2.33, while FBNH rose by 9.56% to N32.10.
Conversely, May & Baker Nigeria led the decline, losing 9.88% to close at N7.75. Academy Press followed with a 9.33% loss to settle at N2.72 while Thomas Wyatt Nigeria fell 9.31% to N1.85.
Deap Capital Management and Trust also dropped 6.80% to 96 kobo while The Initiates Plc (TIP) declined 6.72% to N3.47.
Total trading volume surged by 124.1%, with 1.057 billion shares valued at N28.812 billion exchanged in 15,080 deals. Access Holdings led the volume chart, trading 467.97 million shares worth N12.434 billion.
FBNH followed, with 92.9 million shares valued at N2.81 billion, while UAC of Nigeria (UACN) recorded 46.23 million shares worth N1.67 billion.
AIICO Insurance and Zenith Bank also saw significant trading volumes, with 32.91 million and 29.87 million shares, respectively.
With strong momentum in the banking sector, analysts at Vetiva Dealing and Brokerage anticipate another positive session in the coming days.
“With strong momentum in banking and select large-cap stocks, we anticipate another positive session,” the firm stated.
The NGX remains on an upward trajectory with investor confidence bolstered by corporate earnings expectations and macroeconomic stability.
As trading activity continues to surge, market analysts are optimistic that the banking sector will remain a key driver of growth in the short to medium term.
