NGX Rally Adds ₦2.6trn: Why Nigeria’s Equity Market Is Back in Momentum Mode
Nigeria’s equity market has extended its bullish run, delivering one of its strongest weekly wealth effects in recent months. Investors on the Nigerian Exchange collectively gained ₦2.58 trillion in a week marked by broad-based price appreciation, rising liquidity and renewed institutional activity.
For market strategists, the rally is not merely a numbers game. It reflects a deeper recalibration of risk appetite as investors reposition for earnings momentum, capital raising activity and macroeconomic stabilisation signals heading into the new cycle.
Market Performance: Indices Push Higher
The NGX All-Share Index advanced 2.36 per cent to close at 166,129.50 points, while total market capitalisation rose 2.48 per cent to ₦106.35 trillion, up from ₦103.78 trillion the previous week. The net effect was a ₦2.58 trillion expansion in market value—wealth created through price discovery rather than speculative excess.
With the exception of the NGX AFR Dividend Yield Index, which slipped marginally by 0.15 per cent, all sectoral and thematic indices closed in positive territory, underscoring the market’s breadth.
Liquidity Surge Signals Institutional Return
Turnover data pointed to a clear revival in trading momentum. A total of 4.61 billion shares valued at ₦130.64 billion were exchanged in 263,439 deals, compared with 4.16 billion shares worth ₦94.03 billion traded in the prior week.
The Financial Services sector once again dominated activity, accounting for 3.13 billion shares valued at ₦47.23 billion across 94,186 deals. This represented 67.8 per cent of total volume and 36.2 per cent of total value, reinforcing the sector’s role as the liquidity engine of the Nigerian market.
The Services sector followed with 353.44 million shares worth ₦5.10 billion, while the ICT sector recorded 277.26 million shares valued at ₦18.01 billion—an early signal of renewed interest in technology-linked plays.
Stock Concentration: Where the Volume Went
Trading activity remained concentrated in a handful of names. Sovereign Trust Insurance Plc, Access Holdings, and Linkage Assurance Plc jointly accounted for 1.41 billion shares worth ₦9.74 billion in 11,732 deals. These three stocks alone contributed over 30 per cent of total market volume, highlighting persistent liquidity clustering even amid broad market gains.
Market Breadth: Bulls in Control
Investor sentiment tilted decisively bullish. Eighty equities appreciated during the week, compared with 84 in the previous week, while 17 equities declined, down from 22 previously. Fifty stocks closed flat, reflecting selective profit-taking rather than systemic weakness.
From a technical perspective, this pattern suggests consolidation within an ongoing uptrend—often a healthier signal than an indiscriminate rally.
Top Gainers and Losers
Leading the gainers’ table were NCR Nigeria, SCOA Nigeria, Deap Capital Management, Jaiz Bank, and Omatek Ventures, posting strong price advances that reflected renewed speculative and value-driven interest.
On the downside, Ikeja Hotel, Austinlaz, Eterna, Universal Insurance, and Eunisell Interlinked recorded modest losses—largely attributed to profit-taking rather than fundamental repricing.
Capital Market Activity: Rights Issues and Listings
Beyond secondary market trading, primary market activity added depth to the week’s narrative. The NGX listed an additional 3.16 billion ordinary shares of United Bank for Africa, following the bank’s rights issue at ₦50.00 per share on a one-for-13 basis.
With the listing, UBA’s issued and fully paid-up shares increased from 41.04 billion to 44.20 billion, strengthening its capital base and balance-sheet resilience.
The Exchange also opened trading in Eterna Plc’s rights issue of 978.11 million shares at ₦22.00 per share, alongside the listing of 266.84 million additional shares of Morison Industries from a private placement priced at ₦1.50 per share. Morison’s total issued shares now stand at 1.26 billion, reflecting increased float and potential liquidity upside.
BRANDECONOMY Insight
This week’s ₦2.6 trillion Equity Market rally is less about speculative exuberance and more about structural re-engagement. Banking stocks are absorbing liquidity, corporate actions are deepening market capitalisation, and breadth indicators remain supportive. For investors, the message is clear: Nigeria’s equity market is transitioning from rebound mode to accumulation phase—where disciplined stock selection, earnings visibility and balance-sheet strength will increasingly separate winners from laggards.
