NGX Sustains Upward Momentum, Investors Gain N1.45 Trillion

The Nigerian stock market continued its bullish run on Monday, as investors recorded a remarkable gain of N1.45 trillion following sustained buying interest in major blue-chip stocks and renewed investor confidence in the economy. The positive sentiment pushed the overall market capitalization of the Nigerian Exchange (NGX) to N95.2 trillion at the close of trading, up from N93.75 trillion recorded in the previous session.

Data from the NGX showed that the All-Share Index (ASI) advanced by 1.54 percent to close at 167,842.52 points, compared to 165,286.09 points posted on Friday. The rally was largely driven by price appreciation in the shares of major companies such as Dangote Cement, BUA Foods, MTN Nigeria, Airtel Africa, and Zenith Bank, which collectively accounted for a significant portion of the market’s total gain.

Market analysts attributed the sustained momentum to improved corporate earnings, stability in the foreign exchange market, and renewed interest from institutional investors who are taking advantage of relatively attractive valuations across the market.

According to analysts at Vetiva Capital, “The market continues to see strong momentum from investors reacting positively to improved macroeconomic conditions and expectations of further monetary policy easing. The optimism is reinforced by positive corporate earnings and sectoral recovery, particularly in banking, industrial, and telecom sectors.”

The trading data indicated that a total of 518.43 million shares valued at N9.87 billion were exchanged in 7,346 deals, compared to 426.17 million shares worth N8.22 billion traded in 6,534 deals in the previous session.

Sectoral performance on the NGX also reflected broad-based gains. The Industrial Goods Index led the chart with a 3.6 percent increase, buoyed by gains in Dangote Cement and BUA Cement. The Banking Index followed with a 2.1 percent rise, supported by price appreciation in Zenith Bank, Access Holdings, and GTCO. Similarly, the Consumer Goods and Insurance indices recorded marginal increases of 1.3 percent and 0.9 percent respectively.

Meanwhile, the Oil and Gas Index closed flat as investors adopted a cautious approach amid fluctuating global crude oil prices.

Leading the gainers’ chart were Dangote Cement, which rose by 9.5 percent to close at N812.30 per share, and MTN Nigeria, which gained 6.8 percent to settle at N264.00. BUA Foods also appreciated by 5.2 percent, while Airtel Africa climbed 4.6 percent. On the flip side, some medium-cap stocks such as UACN, Oando, and Cadbury Nigeria recorded marginal losses as investors took profit from previous sessions’ gains.

The sustained market rally has also been linked to the increasing participation of foreign investors who are returning to the Nigerian market following improved foreign exchange liquidity and recent economic reforms. The Central Bank of Nigeria’s measures to stabilize the naira and curb speculative trading in the FX market have improved investor confidence, according to market experts.

A stockbroker at United Capital Securities, Mrs. Ada Nwokedi, said, “We have seen renewed inflows from both local and foreign investors as confidence gradually returns to the market. The current rally is driven by a combination of factors — stable macroeconomic outlook, strong corporate earnings, and improving foreign exchange conditions. Investors are now positioning ahead of year-end dividend declarations.”

In addition, expectations surrounding the upcoming Monetary Policy Committee (MPC) meeting have fueled optimism among investors. Many anticipate that the Central Bank may maintain or slightly ease interest rates to sustain economic recovery, a move that could further boost equities’ attractiveness.

Despite the bullish trend, analysts have advised investors to remain cautious, noting that profit-taking may occur as the market consolidates its recent gains. Cordros Securities, in its market outlook, noted that “while the near-term outlook remains positive, intermittent pullbacks are expected as investors rebalance their portfolios and book profits from the recent uptrend.”

The renewed market confidence has also been bolstered by the continued resilience of key sectors, particularly manufacturing, telecommunications, and banking. The financial sector, which has shown improved performance following recapitalization efforts and stronger liquidity positions, remains one of the main drivers of market growth.

Furthermore, the construction and industrial sectors have benefited from increased government spending on infrastructure and private sector investments, creating additional demand for materials and financial services.

Investor sentiment is also being supported by the steady flow of positive earnings reports from listed firms, signaling strong fundamentals across various sectors. With more companies expected to release their third-quarter financial statements, market participants believe that the positive trend could extend into the last quarter of the year.

Meanwhile, foreign portfolio investors (FPIs) have shown renewed interest in Nigerian equities, taking advantage of improved FX conditions and attractive dividend yields. Analysts expect that continued reforms in the energy and financial sectors will enhance Nigeria’s investment climate and attract more long-term capital inflows.

In summary, the NGX’s impressive N1.45 trillion gain underscores renewed investor optimism in Nigeria’s capital market, driven by macroeconomic stability, strong corporate earnings, and growing investor confidence. With sustained policy reforms and improving liquidity in the FX market, analysts forecast that the bullish momentum may continue into the coming weeks, positioning the Nigerian Exchange for one of its best performances in recent years.