Investors Gain N1.175 Trillion in Four-Day Trading Week as Market Confidence Deepens

The Nigerian stock market recorded an impressive performance in the four-day trading week ended Friday, with investors gaining approximately N1.175 trillion in market capitalization. The strong upward movement came despite the shortened trading period, which excluded Tuesday, October 1, declared a public holiday to commemorate Nigeria’s Independence Day.

Data from the Nigerian Exchange (NGX) showed that the All-Share Index (ASI) advanced by 1.02 percent to close the week at 143,584.04 points, compared to 142,122.23 points in the previous week. Similarly, the total market capitalization rose from N89.960 trillion to N91.135 trillion, reflecting renewed investor optimism and positive sentiment across several sectors of the market.

Market analysts attributed the bullish performance to improved investor confidence in the financial sector, impressive third-quarter earnings expectations, and increasing foreign participation following policy reforms by the Central Bank of Nigeria (CBN). Many investors are said to be taking advantage of low valuations in select banking and manufacturing stocks, anticipating stronger earnings outlooks and dividend prospects.

During the week, the Financial Services sector dominated trading activity, accounting for over 92 percent of the total volume and 76 percent of the total value of shares exchanged. About 7.75 billion shares valued at N88.15 billion were traded in 54,074 deals, led mainly by banking stocks such as Fidelity Bank, United Bank for Africa (UBA), and Cornerstone Insurance. These three equities alone contributed more than 77 percent of total trading volume and nearly half of the week’s traded value.

In total, the market witnessed the exchange of 8.40 billion shares worth N115.50 billion across 115,801 transactions, compared to 7.68 billion shares valued at N94.12 billion in the previous week. The increase in both trade volume and value reflected the growing participation of institutional investors and the gradual return of foreign portfolio investors to the local bourse.

A sectoral performance review revealed a generally positive market breadth. Most sector indices recorded weekly gains, except for the NGX Premium, NGX Insurance, NGX AFR Div Yield, and NGX MERI Value indices, which slipped marginally by 0.05 percent, 2.02 percent, 2.78 percent, and 0.81 percent respectively. The NGX ASeM and NGX Sovereign Bond indices closed flat for the week.

Among the top-performing stocks, Eterna Plc emerged as the week’s best gainer, appreciating by 32.80 percent to close at N15.30 per share, followed by Nigerian Enamelware Plc, which gained 20.94 percent. PZ Cussons Nigeria Plc rose by 20.87 percent on renewed investor confidence following its recent performance update. Other notable gainers included LivingTrust Mortgage Bank Plc with an 18.25 percent rise and Eunisell Interlinked Plc, which appreciated by 17.56 percent.

Conversely, the laggards’ table was led by Julius Berger Nigeria Plc, International Energy Insurance Plc, Union Dicon Salt Plc, AXA Mansard Insurance Plc, and University Press Plc, which all recorded price declines due to profit-taking and sectoral rebalancing.

In another development during the week, Wema Bank Plc increased its market capitalization with the listing of an additional 14.14 billion ordinary shares as part of its recently concluded rights issue. With the new shares, the bank’s total issued and fully paid-up shares rose to 35.57 billion units of 50 kobo each. The additional shares listing further boosted market liquidity and investor interest in the banking sector.

Market analysts believe the positive trajectory of the NGX is an indication that investors are regaining trust in the Nigerian capital market amid improved macroeconomic stability. They point to recent monetary policy actions by the CBN—particularly efforts to clear foreign exchange backlogs, strengthen the naira, and stabilize interest rates—as major factors supporting renewed investor appetite.

Speaking on the market’s performance, a capital market analyst, Mr. Chidi Eze, said that the continued growth of the stock market shows that investors are responding positively to the reforms introduced by economic policymakers. According to him, the rise in market capitalization and active participation across sectors suggest that the reforms are gradually creating an enabling environment for both local and foreign investors.

Eze further noted that the optimism seen in the equities market is likely to persist if inflationary pressures ease and companies continue to post resilient earnings. He emphasized that banking and industrial goods stocks are expected to remain the focus of investors in the coming weeks, especially as quarterly financial statements begin to roll in.

Another market watcher, Mrs. Funmi Adewale, explained that the Nigerian market’s performance is also supported by the gradual recovery of investor sentiment after months of uncertainty. She said that while the market remains susceptible to short-term fluctuations, the long-term outlook appears positive, with increasing diversification and digital transformation driving participation from retail investors.

As Nigeria continues to pursue reforms aimed at stabilizing the macroeconomic environment, market experts believe that the capital market will play a key role in financing growth, deepening liquidity, and fostering investor confidence. The strong close to the week, they added, is a sign that the stock market remains resilient despite economic headwinds and policy uncertainties.

Overall, the N1.175 trillion gain in a shortened four-day week underscores the resilience and attractiveness of the Nigerian equities market. With sustained policy consistency, improved corporate governance, and growing investor engagement, the NGX appears well-positioned to sustain its positive momentum in the coming months, offering both stability and growth opportunities to investors.