Stock Market Gains N203bn as Market Capitalisation Rises Amid Extended Rally

The Nigerian equities market continued its upward momentum on Wednesday, recording another session of impressive gains as investor sentiment remained bullish across major sectors. Market capitalisation surged by N203 billion at the close of trading, reflecting growing investor appetite for blue-chip stocks and optimism over improved macroeconomic fundamentals.

According to trading data from the Nigerian Exchange Limited (NGX), the market capitalisation increased from N56.03 trillion on Tuesday to N56.23 trillion, driven by renewed interest in key sectors such as banking, consumer goods, industrials, and energy. The All-Share Index (ASI), a benchmark indicator of market performance, also rose by 0.36 percent to close at 99,980.32 basis points, sustaining its positive trajectory since the start of the week.

Market analysts attributed the sustained rally to several factors, including expectations of strong corporate earnings, renewed interest from foreign investors, and policy signals aimed at stabilising the economy. The recent engagement between the Nigerian government and capital market regulators, coupled with reforms designed to attract investments, has further strengthened investor confidence. The appreciation of the naira in the foreign exchange market and efforts to improve liquidity have also played a role in boosting market performance.

Trading activities showed that the banking sector remained a major driver of the gains, with Tier-1 lenders such as Zenith Bank, GTCO, and Access Holdings witnessing significant buy pressure. Investors are positioning ahead of expected half-year earnings reports and possible dividend announcements. Similarly, Dangote Cement and BUA Cement recorded price appreciation, contributing significantly to the increase in market capitalisation due to their large weight in the market index.

Market turnover also improved, with investors exchanging over 450 million shares valued at approximately N8.7 billion in over 7,000 deals. This represented an increase compared to the previous trading session, highlighting sustained market participation by institutional and retail investors. Leading the volume chart were stocks in the financial services sector, with Access Holdings, Fidelity Bank, and UBA dominating trading activities.

The rally in consumer goods stocks further strengthened the market. Nestlé Nigeria and Nigerian Breweries recorded modest gains as investors anticipated stronger earnings amid increased demand and ongoing restructuring within the companies. Oil and gas equities also saw price movements, with Seplat Energy attracting renewed buy interest following positive sentiments in the global oil market.

Analysts at several investment firms have noted that the current bullish run is supported by macroeconomic policy reforms introduced by the federal government. Measures such as the removal of fuel subsidies, efforts to unify the foreign exchange market, and policies aimed at boosting non-oil revenues are expected to support economic growth, which, in turn, may lead to stronger corporate earnings across listed firms.

Investor sentiment has also been buoyed by recent comments from President Bola Tinubu during meetings with financial market leaders in Brazil, where he reaffirmed the government’s commitment to improving the ease of doing business and strengthening market infrastructure. Market observers say such assurances help attract both domestic and foreign portfolio investments, further boosting liquidity in the equities market.

However, some market analysts have cautioned that while the rally presents opportunities for investors, risks remain, particularly from global economic uncertainties, inflationary pressures, and possible interest rate adjustments. They advise investors to maintain a diversified portfolio and focus on fundamentally strong stocks with solid earnings potential.

Looking ahead, analysts believe that if the current positive sentiment persists, the market could witness further upward movements, especially with expectations of corporate earnings releases and potential interim dividends. The resilience of the Nigerian stock market in recent weeks has underscored its attractiveness despite prevailing economic challenges.

The NGX has been one of the best-performing markets in Africa since the start of the year, buoyed by reforms and renewed investor interest. With continued policy support and improving macroeconomic indicators, stakeholders are optimistic that the equities market will remain on an upward trend in the short to medium term.

In summary, the N203 billion increase in market capitalisation reflects robust investor confidence and optimism about Nigeria’s economic outlook. If sustained, this rally could contribute significantly to wealth creation for investors and support broader economic development. The coming weeks will be critical as earnings reports from listed companies begin to shape investor sentiment further, with market participants closely monitoring both domestic and global developments.