NGX Extends Rally as Investor Confidence Grows

The Nigerian stock market continued its upward momentum last week, with the NGX All-Share Index (ASI) rising to 247,357.40 points as investors increased demand for large-cap and fundamentally strong stocks.

The rally was driven by renewed buying interest across the banking, consumer goods and industrial sectors. Market sentiment also received a boost following Dangote Refinery’s announcement of a successful $2.5 billion private equity placement, a deal reportedly 3.7 times oversubscribed. The development strengthened confidence ahead of the company’s planned September listing.

The Nigerian stock market added ₦2.531 trillion in value during the week, lifting total market capitalisation to ₦159.588 trillion, compared with ₦157.057 trillion the previous week. The NGX All-Share Index also gained 1.6 per cent, climbing from 243,463.13 points to 247,357.40 points.

Investors traded a total of 4.433 billion shares worth ₦306.143 billion in 255,589 deals, surpassing the previous week’s 2.819 billion shares valued at ₦182.499 billion across 226,729 deals.

The Financial Services sector dominated trading activity with 3.422 billion shares valued at ₦207.206 billion, accounting for 77.18 per cent of total trading volume and 67.68 per cent of market value. Consumer Goods and ICT followed in second and third place.

Trading activity was led by First Holdco Plc, Access Holdings Plc and Guaranty Trust Holding Company Plc, which together accounted for 2.151 billion shares worth ₦170.793 billion.

Investor interest also grew after Olufemi Otedola acquired an additional 706.13 million shares in First Holdco, further boosting confidence in the financial services sector.

Analysts at InvestData Consulting Limited expect the Nigerian stock market to remain cautiously bullish, with investors likely to focus on companies with strong fundamentals, attractive valuations and positive corporate developments.

Do you think the current market rally can be sustained in the coming months?