Equities Market Opens Week with ₦193 Billion Surge

 

Nigeria’s equities market kicked off the week on a strongly positive note, as investor sentiment buoyed market capitalisation by approximately ₦193 billion. The bullish move reflects growing optimism across key economic sectors and upcoming corporate earnings reports.

On Monday, the All-Share Index (ASI) rose by 305.67 points—a gain of about 0.25%—closing at 121,295.33. Market capitalisation climbed from around ₦76.339 trillion at Friday’s close to an estimated ₦76.532 trillion, marking a solid start to the week .

The strength came amid a resurgence in demand for large-cap and medium-cap stocks, with investors actively picking positions ahead of the half-year financial reports season . Consumer goods, banking, and insurance sectors were at the forefront, maintaining a positive trajectory.

Leading the rally were standout performances by Cadbury Nigeria Plc, Ellah Lakes Plc, and Tripple Gee & Company Plc—each gaining 10% to close at ₦53.35, ₦8.91, and ₦2.97 respectively. Other notable gainers included Red Star Express (+9.92%), Nigerian Exchange Group (+9.91%), Meyer, and Omatek—all contributing notably to the overall market strength .

Despite the positive theme, market activity saw a slight dip in volume. Trading volumes declined by approximately 10.8% to 824.1 million shares, although the total value of traded stocks surged to ₦14.44 billion across 24,042 deals . This divergence suggests fewer trades but larger individual transactions, a typical pattern during bullish market turns.

Activity was concentrated in financial and insurance stocks. Universal Insurance led in volume with around 71.9 million shares changing hands; First City Monument Bank followed with 61.4 million shares; and Japaul Gold & Ventures recorded 53.3 million shares . In value terms, Nigerian Breweries topped the chart with trades worth ₦2.3 billion, closely followed by Zenith Bank at ₦1.4 billion, Nestlé Nigeria at ₦1.2 billion, and Access Holdings at ₦942.8 million .

The market breadth supported the bullish mood, with between 51 and 55 stocks advancing against 23 losers, depending on the source . The number of gainers matched or exceeded those declining, reinforcing the market-wide rally.

On the flip side, underperformers included Sunu Assurances (‑10%), RT Briscoe (‑9.59%), Prestige Assurance (‑9.09%), UPDC (‑8.23%), and Berger Paints (‑7.58%) . Despite headline gains, the presence of sharp losers highlights volatile intraday swings and selective profit-taking across sectors.

Analysts are cautiously optimistic about the outlook. Coronation Securities noted that the market is expected to remain within a narrow but positive range as investors position ahead of half-year earnings, with possible intermittent profit-taking. They believe improved foreign investor participation, solid earnings expectations, and continued rotation into consumer goods and banking stocks will support the trend .

MarketForces Africa echoed this, stating that bargain hunting generated the ₦193 billion boost, while banking and consumer goods sectors fuelled the rally .

Sector-specific performance also underpinned the overall confidence. The NGX Banking Index led with a 0.94% gain, followed by the Consumer Goods Index (+0.75%), Insurance (+0.39%), and marginal gains in industrial and oil & gas sectors .

Week-to-date, the ASI rose by around 1.15%, while year-to-date returns now hover between 17.9% and 17.93%, highlighting sustained investor appetite this year .

Looking forward, investors are keenly awaiting half-year earnings results, which are expected to provide fresh catalysts. Strong corporate earnings could reinforce the upward momentum, but analysts caution that profit-taking may temper gains. Broader macroeconomic factors—global oil prices, inflation trends, and policy stability—remain key market influencers.

In summary, Nigeria’s equities market opened the week on a bullish tone, driven by a ₦193 billion increase in market capitalisation and boosted by bargain buying in key sectors. The widespread gains among leading stocks and growing investor participation suggest confidence ahead of earnings season. However, cautious monitoring of volume trends, sector rotation, and external risks remains crucial as the market embarks on this next phase.