Nigerian equities continued their remarkable ascent on Wednesday, with the market capitalisation surging past N88 trillion for the first time as investors added N863 billion to their collective wealth.
The sustained rally reflects growing confidence in corporate fundamentals, buoyed by positive earnings releases and a wave of interim dividend declarations across key sectors.
The benchmark All-Share Index advanced 1.00%, gaining 1,365.8 basis points to close at a historic peak of 139,278.67 points, extending gains from Tuesday’s 137,912.87 points.
This performance has pushed the year-to-date return to an impressive 35.32%, highlighting the market’s resilience and investors’ growing confidence in the underlying economic drivers.
Market sentiment remained decidedly positive, with 39 stocks advancing against 32 declining stocks, whilst 86 remained unchanged across 36,423 deals.
This pattern suggests a combination of opportunistic buying and selective profit-taking, with sustained interest concentrated in medium and large-capitalisation stocks.
Mining Sector Captures Spotlight
Leading Wednesday’s gainers was Multiverse Mining & Exploration Plc, which surged by the maximum daily limit of 10% to close at N9.90 from N9.00 per share. The company, primarily engaged in exploring and extracting solid minerals including tantalite, lithium, and precious metals, appears to be benefiting from renewed market recognition of Nigeria’s vast, largely untapped mineral reserves.
The significant price appreciation signals a positive re-rating by investors, reflecting growing awareness of the potential within Nigeria’s solid minerals sector. This surge comes at a time when global demand for lithium and other battery metals continues to strengthen, driven by the electric vehicle revolution and renewable energy storage requirements.
Insurance Sector Shows Signs of Life
Royal Exchange Assurance Plc emerged as another standout performer, recording the maximum 10% gain to close at N1.54 from N1.40 per share. This performance reflects a renewed positive sentiment towards Nigeria’s often-overlooked insurance sector, which has traditionally been overshadowed by banking and consumer goods stocks.
As one of Nigeria’s oldest and most established insurance companies, Royal Exchange offers comprehensive life and non-life insurance products. The strong price movement suggests investors are beginning to recognise value opportunities within the insurance space, particularly given relatively modest valuations compared to other financial services subsectors.
Broad-Based Gains Across Sectors
The rally extended beyond the headline performers, with Berger Paints Plc recording a near-maximum gain of 9.97% to close at N37.50. Dangote Sugar Refinery Plc and NPF Microfinance Bank Plc both advanced 9.97%, whilst UACN and MECURE posted gains of 9.94% and 9.89% respectively.
However, the market was not without its casualties. Abbey Mortgage Bank Plc and FTN Cocoa Processors Plc both declined by the maximum 10% limit. Other notable fallers included Consolidated Hallmark Plc, which shed 7.78%, Honeywell Flour Mill Plc down 7.22%, and Tantalizer Plc losing 7.04%.
Sectoral Performance Reflects Mixed Dynamics
Sectoral performance painted a generally positive picture with some notable variations. The Banking sector led gains with a robust 1.94% advance, reflecting continued investor optimism following strong half-year financial results from major quoted companies. The Industrial Goods sector also posted solid gains of 1.35%, whilst the Commodities sector managed a modest 0.04% increase.
Conversely, the Insurance sector declined 0.95% despite Royal Exchange’s individual strength, indicating mixed performance within the subsector. The Oil & Gas sector edged down 0.08%, whilst the Consumer Goods sector closed flat.
Trading Activity Reveals Shifting Patterns
Trading patterns presented an interesting dichotomy. Total volume declined 3.73% to 905.73 million units, yet total value surged 11.58% to N34.17 billion, suggesting investors focused on higher-value stocks rather than speculative plays.
Fidelity Bank Plc dominated volume activity, accounting for 10.16% of total units traded, followed by Access Holdings Plc and Universal Insurance Plc.
By value, MTN Nigeria commanded the largest share at 10.00% of total trading value, with Guaranty Trust Holding Company and Nigerian Breweries Plc following closely behind.
The sustained momentum in Nigerian equities reflects a confluence of positive factors including robust corporate earnings, attractive dividend yields, and growing recognition of the market’s long-term potential.
As companies continue to release encouraging interim results and announce dividend payments, investor appetite appears likely to remain strong, potentially driving the market to further record highs in the coming sessions.
