NGX Soars with historic ₦1.81trn in One Day Amid Investor Confidence Surge
Nigerian stock market posts historic single-day rally as investors gain ₦1.806 trillion, lifted by FX stability, improved liquidity, and strong banking and consumer stock performance.
In a landmark session on Thursday, the Nigerian Exchange (NGX) delivered one of its most bullish single-day performances in history, as market capitalization surged by ₦1.806 trillion. This rally, which marked the fourth consecutive day of gains, was driven by renewed investor confidence, macroeconomic stability, and anticipation of strong corporate half-year results.
The All-Share Index (ASI) climbed 2,457.13 points, or 2.01%, closing at 124,446.80, while market capitalization hit an all-time high of ₦78.726 trillion, up from ₦76.970 trillion the previous day.
According to market analysts, this performance reflects a transition from sentiment-driven to fundamentals-driven investing, signaling a maturing equities landscape amid President Bola Tinubu’s ongoing economic reforms.
“We’re seeing the beginning of a fundamentals-led rally,” said David Adonri, Vice Chairman of Highcap Securities. “The FX rate stability, recovery in consumer goods, and the resilience of banks post-regulatory forbearance concerns are reshaping investor outlooks.”
Sector Breakdown: Banks, Consumer Goods Lead the Charge
The session saw broad-based gains, with 70 equities advancing against 10 decliners, underscoring the depth of market momentum.
- FTN Cocoa, UPDC, UBA, Haldane McCall, and Consolidated Hallmark Holdings each posted maximum daily gains of 10%.
- Notably, United Bank for Africa (UBA) closed at ₦39.60, cementing its role as a key driver of the rally.
- On the downside, Neimeth Pharmaceuticals fell 9.91%, Legend Internet dropped 9.88%, while Cadbury Nigeria, Industrial and Medical Gases, and Livestock Feeds also closed in negative territory.
Market Activity: Liquidity Hits New Highs
Trading volumes surged alongside prices, with 1.3 billion shares worth ₦27.73 billion exchanged in 27,875 deals, compared to 888.7 million shares valued at ₦15.61 billion on Wednesday.
Top trades by volume and value included:
- Access Corporation: 174.22 million shares worth ₦3.99 billion
- AIICO Insurance: 81.96 million shares valued at ₦165 million
- Ja Paul Gold: 74.01 million shares worth ₦245.2 million
- UBA: 64.51 million shares worth ₦2.52 billion
- FCMB: 63.3 million shares worth ₦585.75 million
Investor Sentiment: From Skepticism to Strategic Positioning
The sharp uptick in market activity reflects growing institutional interest, possibly buoyed by:
- Stabilizing exchange rates encouraging Foreign Portfolio Investment (FPI) inflows
- Improved liquidity conditions following coordinated monetary and fiscal actions
- Recovery in consumer goods earnings after prolonged FX-induced impairments
- Confidence in Tier-1 banks navigating post-recapitalization terrain
Additionally, the foreign dual listing of GTCO is reportedly boosting sentiment across the banking sector, pulling up valuations of peer stocks in the process.
“There is now a clear rotation into value stocks, particularly banks and consumer goods. If the upcoming half-year earnings meet expectations, this rally may have further legs,” said a Lagos-based fund manager.
Outlook: Volatility or Sustained Momentum?
While the NGX’s historic gain is a positive signal for both retail and institutional investors, analysts urge caution as corporate earnings season unfolds.
“This bullishness may sustain if companies report solid fundamentals,” Adonri noted. “But any disappointment in earnings or policy missteps could prompt swift corrections.”
The Nigerian market appears to be entering a new phase of structural optimism, anchored on macro reforms, regulatory clarity, and improved corporate governance. As momentum builds, the key challenge will be maintaining consistency in policy delivery and deepening market participation through sustained FPI inflows and domestic investor engagement.
Conclusion
Thursday’s ₦1.81 trillion leap on the NGX marks more than just a record—it symbolizes growing investor alignment with Nigeria’s evolving economic narrative. For equities investors, the landscape is shifting. From policy recalibration to market revaluation, the bulls appear back—this time, with fundamentals on their side.
