Nigerian Stock Market Soars: Investors Gain N1.27 Trillion as NGX Rally Continues

The Nigerian equities market maintained its impressive bullish momentum on Thursday, February 5, delivering substantial gains for investors as market capitalization surged by a remarkable N1.27 trillion. This significant appreciation in investor wealth reflects growing confidence in the nation's capital market amid positive economic indicators.

Market Performance Indicators Show Strong Growth

The benchmark NGX All-Share Index (ASI) recorded a substantial increase of 1.18%, climbing from 168,030.18 points to 170,005.36 points. This upward movement translated into market capitalization reaching N109.13 trillion, demonstrating the substantial inflow of funds into equities during the trading session. Market sentiment remained firmly bullish throughout the day, with 53 gainers significantly outnumbering 18 losers.

Key Contributors to Market Rally

The market rally was primarily driven by strong buying interest in large- and mid-cap stocks, with several prominent companies leading the charge. Seplat Energy Plc emerged as the top gainer, while other significant contributors included Custodian Investment, Julius Berger Nigeria, and MTN Nigeria Communications. These companies demonstrated robust performance that significantly influenced the overall market direction.

Trading Activity and Volume Analysis

Trading activity showed notable improvement with total volume increasing by 2.62% to reach 712.98 million shares. These transactions were valued at N22.26 billion and executed across 46,104 deals. Access Holdings Plc dominated trading volume with 106.63 million shares exchanged, representing 14.96% of total market volume. In value terms, Geregu Power Plc led with transactions worth N2.80 billion, accounting for 12.58% of the day's total trading value.

Top Performers and Decliners

Notable gainers during the trading session included:

Guinea Insurance Plc: Rose from N1.30 to N1.43 (+10.00%)
Consolidated Hallmark Insurance Plc: Advanced from N100.00 to N110.00 (+10.00%)
Seplat Energy Plc: Climbed from N6,700.00 to N7,370.00 (+10.00%)
Lotus Halal Fixed Income Exchange Traded Fund: Moved from N177.15 to N194.86 (+10.00%)
RT Briscoe Plc: Increased from N10.45 to N11.49 (+9.95%)

Key decliners included:

FGN Sukuk 2031 Series IV: Declined from N99.00 to N81.00 (-18.17%)
Deap Capital Management and Trust Plc: Fell from N6.86 to N6.20 (-9.62%)
Universal Insurance Plc: Dropped from N1.59 to N1.44 (-9.43%)
HM Capital Plc: Slipped from N4.40 to N4.00 (-9.09%)
Red Star Express Plc: Declined from N17.15 to N15.60 (-9.04%)

Most Actively Traded Stocks

The trading session witnessed significant activity across several stocks, with the following companies recording the highest trading volumes:

Access Holdings Plc: 106.63 million shares valued at N2.45 billion
Chams Holding Company Plc: 44.50 million shares worth N201.31 million
Champion Breweries Plc: 44.46 million shares valued at N774.31 million
Universal Insurance Plc: 34.82 million shares worth N53.64 million
Deap Capital Management and Trust Plc: 22.74 million shares valued at N141.91 million

The continued bullish trend in the Nigerian stock market reflects growing investor confidence and suggests positive momentum for the nation's capital market. With market capitalization now exceeding N109 trillion, this performance indicates robust economic fundamentals and potentially signals further growth opportunities for both domestic and international investors.