Nigerian Stock Market Witnesses ₦899 Billion Gain, All-Share Index Hits Milestone
In a significant development, the Nigerian stock market experienced a remarkable surge on Friday, with investors reaping gains amounting to ₦899 billion. This impressive performance reflects the resilience and optimism prevailing in the market despite prevailing economic challenges.
Unprecedented Market Performance
Transaction data from Friday’s trading session revealed a notable increase in market capitalization, which surged from ₦56.259 trillion to ₦57.158 trillion, marking a remarkable 1.59 percent increase. The All-Share Index also witnessed a substantial rise, climbing by 1,643.79 points or 1.59 percent to settle at an unprecedented 104,421.23, a milestone achievement compared to the previous session’s close of 102,802.25. This surge has propelled the Year-To-Date (YTD) return to an impressive 39.65 percent, showcasing the market’s robust performance.
Drivers of Market Growth
The surge in market performance can be attributed to sustained investor interest in the stocks of Tier-one banks and telecom giant MTN Nigeria. This renewed investor confidence, coupled with favorable market conditions, contributed to the overall positive sentiment witnessed in Friday’s trading session. Additionally, the market breadth remained positive, with 57 stocks recording gains compared to 12 decliners, highlighting the broad-based nature of the market rally.
Notable Gainers and Losers
On the gainers’ table, Sterling Nigeria, Neimeth International Pharmacy (NEIMETH), and Transcorp emerged as top performers, each recording a significant 10 percent increase in share prices. Conversely, John Holt, Morison Industries, and NEM Insurance were among the notable losers, registering declines in share prices.
Increased Trade Turnover
Market activity surged during Friday’s session, with trade turnover settling higher compared to the previous session. A total of 944 million shares valued at ₦23.48 billion were exchanged in 11,512 deals, indicating heightened investor participation and trading activity.
Analysts’ Perspective
David Adonri, Vice Chairman of Highcap Securities Ltd., attributed the remarkable market performance to investors’ substantial profit-taking amidst favorable market conditions. He emphasized that institutional investors, who dominate the market, remain undeterred by short-term volatility, focusing instead on long-term investment strategies.
