Nigeria’s stock market recovered sharply last week as demand for blue-chip companies increased, increasing market value by N985 billion.
Reflecting both institutional and retail confidence, this sharp rebound marked a definite shift after several weeks of tentative trading.
With 140,545.69 points, the NGX All-Share Index (ASI) increased 1.13 percent week over week from its level of 138,980.01 points the prior week. Rising year-to-date return to 36.55 percent—a sure indication of optimism despite Nigeria’s difficult economic situation—total market capitalization soared to N88.92 trillion.
Particularly in industries including banking, commodities, and industrial goods, The News Chronicle gathered that investors are returning to blue-chip counters because of their stability, liquidity, and good fundamentals. Analysts contend that even under relentless inflationary pressures, this increased appetite reflects confidence in long-term growth prospects.
With the number of trades up 12.8 percent to 132,841, trade activity also increased significantly. Total trade value increased 2.36 percent to 3.19 billion units, showing greater market involvement as the value of traded equities increased 10.54% to N99.70 billion.
Six sector indices followed by the market ended in positive ground. With a 2.73 percent increase, the NGX Commodities Index led the charge; the Insurance Index followed at 2.45 percent. Oil and gas companies made 2.38 percent amid higher worldwide crude oil prices, while investors went back to tier-one companies, the Banking Index rose 1.68 percent. Consumer goods climbed 0.98 percent on cement demand, while industrial products increased 1.13 percent.
E-Tranzact climbed 37.8 percent on the gainers’ chart, followed by NCR Nigeria at 31.6 percent, while Regal Insurance and Chellarams each rose 26.7 percent. John Holt also stunned with an 18.3 percent increase. Conversely, Union Dicon Salt dropped 19%, Eterna Plc decreased 18.4%, and Thomas Wyatt Nigeria lost 16.3%.
Once again, the financial services sector dominated action, comprising 71.6 percent of traded volume and value. With over 39% of the total volume, FCMB Group, Access Holdings, and Universal Insurance stood out as the most actively traded stocks.
Though they caution that enduring performance will depend on financial stability and steady policy direction, analysts remain somewhat optimistic with fresh momentum and increasing liquidity.
