Nigeria: Equities Market Gains N160bn As Banking Stocks Rally

Nigeria's equities market opened the week on a positive note, with market capitalisation gaining approximately N159.82 billion as buying interest in banking stocks supported the benchmark index.

The Nigerian Exchange (NGX) All-Share Index (ASI) rose by 0.10 percent to close at 243,299.24 points, lifting its year-to-date return to 56.35 percent.

Market capitalisation increased to N157.75 trillion, despite a decline in overall trading activity. The volume of shares traded fell by 22.42 percent to 428.94 million units, while transaction value declined by 20.45 percent to N20.51 billion.

The number of deals, however, increased by 19.49 percent to 54,506, indicating higher transaction frequency despite the decline in traded volume and value.

Market breadth weakened to 0.71x, with 20 stocks recording gains compared with 28 decliners. The figures indicated that the marginal increase in the benchmark index was not broadly supported across the market.

SterlingNG led trading volume with 78.05 million shares exchanged in 398 deals. Aradel Holdings recorded the highest transaction value, with trades worth approximately N2.48 billion across 1,395 deals.

Sectoral performance was mixed during the session. The banking sector gained 0.68 percent, providing support for the broader market. Insurance declined by 0.53 percent, consumer goods fell by 0.23 percent, while oil and gas stocks shed 0.05 percent. The industrial and commodity sectors closed relatively flat.

The positive performance came amid continued investor interest in small- and mid-cap stocks, as market participants assess opportunities following the commencement of the Dangote Refinery initial public offering.

Analysts expect investors to remain cautious in the near term as attention shifts between the Dangote Refinery IPO and opportunities across different sectors of the equities market.

The mixed sectoral performance and weak market breadth suggest that investors remain selective, despite the continued positive year-to-date performance of the NGX All-Share Index.

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