Investors on the Nigerian Exchange (NGX) enjoyed a major payday last week as market capitalisation surged by N1.711 trillion, riding on a wave of bullish sentiment that pushed key indices to record highs.
The benchmark All-Share Index (ASI) appreciated by 2.49% week-on-week to close at 111,742.01 points, up from 109,897.63 points at the start of the week. This performance elevated total market capitalisation from N68.752 trillion to N70.463 trillion.
Midweek, the ASI shattered the psychological barrier of 112,000 points, reaching an all-time high of 112,237.26 points before mild profit-taking trimmed gains slightly by the close of the week.
The market rally was fueled by strong macroeconomic indicators, improved investor sentiment, and favorable market internals. A flurry of buying activity, particularly in the consumer goods and insurance sectors, helped several equities notch new 52-week highs.
Investor confidence remained firm, with 56 stocks advancing against 44 decliners. Though the number of deals dropped by 14.9% to 89,380 and trade volume slipped by 3.51% to 3.78 billion units, the value of trades jumped significantly by 59.8% to N119.19 billion.
This shift indicates a growing appetite for blue-chip and large-cap stocks, suggesting strategic accumulation by both retail and institutional investors.
The NGX Consumer Goods Index led sectoral gains with a 3.78% increase, driven by renewed demand for food and beverage stocks. The Insurance Index climbed by 1.02%, while the Banking Index rose by 0.66%, supported by price upticks in tier-one lenders. The Industrial Index gained 0.35%, and the NGX Commodity Index inched up by 0.14%.
In contrast, the Oil and Gas Index slipped by 2.05% following profit-taking in SEPLAT, MRS Oil, and CONOIL.
Several equities were central to the week’s strong showing. Notable gainers included NAHCO, ARADEL, Airtel Africa, Okomu Oil, Guinea Insurance, Honeywell Flour Mills, Livestock Feeds, Ecobank Transnational (ETI), AXA Mansard, Zenith Bank, Fidelity Bank, Custodian Investment, SCOA, and RT Briscoe.
These counters attracted heightened investor interest on the back of strong earnings expectations, corporate announcements, or sector-driven developments.
Universal Insurance Plc led the week’s best performers with a 35.3% gain, followed by Red Star Express Plc with a 24% rise. Omatek Ventures Plc gained 20%, ABC Transport Plc added 18.5%, and Northern Nigeria Flour Mills Plc rose by 17%.
On the flip side, Abbey Mortgage Bank declined by 26.9%, while Legend Internet fell by 18.9%, Enamelware dropped by 18.8%, and both International Medical Group and Multiverse Mining lost 15.6% each.
Looking ahead, analysts at Cowry Assets forecast a continued bullish run into the new week, driven by sustained interest in fundamentally strong, dividend-paying stocks.
With the second quarter drawing to a close, investors are expected to continue positioning ahead of the half-year earnings season.
According to the analysts, the market’s momentum is likely to hold as long as macroeconomic and policy fundamentals remain favourable.
“With momentum on its side, the NGX appears poised for continued growth in the near term—provided that macro and policy fundamentals remain supportive,” Cowry Assets stated in a note to Business Metrics.
