The Nigerian stock market crossed a major milestone, as the market capitalization hit a new high of N80.144 trillion, showing strong investor confidence, especially in mid- and low-cap stocks. This new record reflects positive sentiment ahead of the half-year earnings season.
Trading on the floor of the Nigerian Exchange Limited (NGX) opened the week on a bullish note, gaining N341 billion from the previous trading session. The market capitalisation rose from N79.803 trillion to N80.144 trillion, while the All Share Index (ASI) increased by 539.59 basis points or 0.43%, closing at 126,689.54 points, up from 126,149.59 points last week.
Market analysts say the rally is being supported by strategic buying from both institutional and retail investors looking to take positions in undervalued stocks ahead of expected half-year results.
The market breadth also supported this positive trend, with 45 stocks gaining value, compared to 36 losers, showing strong demand across several sectors. Secure Electronic Technology Plc led the gainers’ chart, appreciating by 10% to close at N1.10 per share. It was followed by Abbey Mortgage Bank, which gained 9.99% to close at N7.60, and Ikeja Hotel, which rose by 9.95% to close at N22.10 per share.
Other top gainers include McNichols, which appreciated by 9.92% to N4.32, and Tripple Gee & Company, which rose by 9.78% to N3.93 per share.
However, not all stocks ended on a positive note. The losers’ chart was led by Cutix Plc, RT Briscoe, Tantalizers, and Caverton Offshore Support Group, all of which declined by 10% each. They closed at N4.14, N3.96, N2.70, and N7.20 per share respectively.
Neimeth International Pharmaceuticals followed closely, falling by 9.95% to N8.24, while Ellah Lakes lost 9.90% to settle at N11.38 per share.
Despite the price increases in several stocks, trading volume dipped slightly. A total of 1.287 billion shares were traded, a decline of 7.39% compared to the previous session. These shares were valued at N32.306 billion and exchanged in 39,431 deals.
The top traded stock by volume was Access Holdings, with 138.031 million shares worth N3.502 billion. Other active stocks included Japaul Gold & Ventures with 93.370 million shares valued at N292.93 million, and AIICO Insurance, which recorded 93.356 million shares worth N220.549 million.
Also actively traded were United Bank for Africa (UBA) with 68.791 million shares worth N3.055 billion, and Jaiz Bank, which moved 59.651 million shares valued at N231.089 million.
In its outlook for the market, Coronation Merchant Bank noted that investors may become more cautious in the coming days as they await the June Consumer Price Index (CPI) data. The inflation figure, expected soon from the National Bureau of Statistics, will likely guide further positioning.
The bank added that investor confidence in the banking sector may be further supported by the submission of Capital Restoration Plans and ongoing quarterly disclosures, in line with recent CBN directives.
“Overall, investor positioning is generally expected to intensify across the board ahead of the start of the half-year earnings season,” Coronation said in a market note.
Market observers believe that sectors like banking, consumer goods, and insurance may attract more attention as investors look out for positive earnings surprises and improved dividend outlooks.
The NGX’s performance is also being viewed as a signal that Nigeria’s capital market is recovering steadily, despite inflationary pressures and other macroeconomic challenges. With continued interest in value stocks and reforms in key sectors, analysts predict that the market could experience more gains in the coming months, especially if companies begin to announce strong half-year results.
