Equities investors gain N1.75trn as FirstHoldCo, BUA Cement rally

Equities investors on the Nigerian Exchange (NGX) gained approximately N1.75 trillion on Monday as renewed buying in banking and cement stocks lifted market capitalisation to N158.81 trillion, extending the market’s bullish momentum despite escalating geopolitical tensions in the Middle East.

The Nigerian Exchange All-Share Index (ASI) advanced by 1.12 per cent to close at 246,183.96 points, while market capitalisation rose by the same margin to N158.81 trillion, as investors accumulated fundamentally strong stocks ahead of key macroeconomic events, including the Central Bank of Nigeria’s Monetary Policy Committee (MPC) meeting and the ongoing earnings season.

Market sentiment was driven by strong gains in FirstHoldCo, BUA Cement and FCMB, which appreciated by 9.95 per cent, 9.98 per cent and 9.26 per cent, respectively, outweighing losses recorded by Neimeth, Abbey Mortgage Bank and Tripple Gee.

Trading activity also strengthened considerably, with total volume traded rising by 24.17 per cent to 851.63 million shares, while the value of transactions increased by 16.19 per cent to N49.59 billion.

FirstHoldCo dominated market activity after investors exchanged 203.94 million shares valued at N21.52 billion, accounting for the largest share of both trading volume and value.

Despite the market’s overall gain, breadth remained slightly negative as 32 stocks declined against 31 gainers, reflecting selective buying by investors. Custodian Investment Plc emerged the day’s best-performing stock after gaining 10 per cent, while SUNU Assurance topped the losers’ chart with a 10 per cent decline.

Analysts said investors continued to position in fundamentally strong banking, industrial and blue-chip stocks ahead of expected half-year corporate earnings and monetary policy decisions.

The rally came as the Nigerian Foreign Exchange Market (NAFEM) remained broadly stable, with the naira appreciating marginally by 0.01 per cent to close at N1,380.11/$, reinforcing confidence in macroeconomic stability.

Meanwhile, developments in the global oil market provided additional support for sentiment across energy-related counters.

International benchmark Brent crude climbed 2.6 per cent to $88.02 per barrel, while Bonny Light surged by 17.97 per cent to $84.50 per barrel, following renewed hostilities between the United States and Iran that heightened concerns over oil supplies through the Strait of Hormuz.

The escalation in geopolitical tensions has pushed oil prices to their highest levels in more than a month after reports of attacks on vessels around the strategic shipping route that handles about one-fifth of global crude oil supplies.

Although prices later moderated on reports of diplomatic efforts aimed at securing a ceasefire, analysts warned that the market remains highly sensitive to any prolonged disruption in Middle Eastern exports.

Higher crude prices could improve Nigeria’s oil earnings and fiscal revenues but may also increase inflationary pressures and complicate monetary policy decisions if sustained.

The bullish performance extended to the NASD Over-the-Counter market, where the NASD Security Index rose 0.52 per cent to 4,343.27 points, lifting market capitalisation to N2.61 trillion.

Trading volume on the NASD market jumped by 6,663.34 per cent to 52.55 million units, while transaction value surged by 200.95 per cent to N191.21 million, reflecting improved investor activity outside the main exchange.

Market analysts said investor attention will remain focused on the outcome of the MPC meeting, second-quarter earnings releases and developments in global oil markets, which are expected to influence trading direction in the coming sessions.