Stocks Rally As Investors Trade N193.3bn In One Week

The Nigerian equities market extended its bullish momentum during the week as trading activity and prices surged, with investors exchanging a total of 4.652 billion shares valued at N193.33bn in 286,751 deals.

The performance marked a significant improvement over the previous week, when 3.860 billion shares worth N128.58bn were traded in 240,463 deals, reflecting stronger participation and renewed risk appetite across the market.

The positive trading sentiment lifted the benchmark index of the Nigerian Exchange Limited, as the All-Share Index advanced by 6.16 per cent to close at 182,313.08 points.

Market capitalisation also appreciated correspondingly, rising to N117.03trn, supported by price gains across major sectors and large-capitalisation stocks.

Sector performance remained broadly positive throughout the week, with nearly all indices closing higher, an indication of widespread buying interest across different segments of the market.

The sole laggard was the NGX Sovereign Bond Index, which recorded a marginal decline of 0.01 per cent, while equities continued to attract the bulk of investment flows.

Market breadth strengthened further as the number of appreciating stocks increased. A total of 79 equities recorded price gains, higher than the 71 recorded in the preceding week. Declining stocks reduced to 27 from 35, while 42 equities closed unchanged, the same number recorded previously.

The improvement in market breadth suggested that the rally was supported by a broader range of stocks rather than being driven only by a handful of heavyweight counters.

Trading activity remained heavily concentrated in financial stocks, reinforcing the sector’s dominance on the exchange. The Financial Services industry accounted for the highest turnover, with 2.782 billion shares valued at N74.06bn traded in 104,325 deals.

This represented 59.81 per cent of total traded volume and 38.31 per cent of value, highlighting sustained investor demand for banking and financial service equities.

The Services sector followed with 573.189 million shares worth N7.18bn in 28,784 deals, while the Consumer Goods sector recorded 317.667 million shares valued at N24.03bn in 33,280 deals.

Investor focus was particularly strong on a few heavily traded counters. Transactions in Deap Capital Management & Trust Plc, Access Holdings Plc, and Zenith Bank Plc accounted for 980.253 million shares worth N30.18bn in 25,390 deals.

Combined, these equities contributed 21.07 per cent of total trading volume and 15.61 per cent of total value, underscoring their importance in determining overall market direction.

Market analysts attribute the week’s rally to sustained liquidity inflows, portfolio repositioning and continued investor interest in fundamentally strong banking stocks, particularly amid expectations of robust earnings and attractive dividend yields.

The sharp rise in turnover and expansion in the number of advancing stocks point to strengthening confidence in equities, although intermittent profit-taking is expected as investors lock in gains following the rapid appreciation.