Equities market climbs to N162.68trn as trading value jumps 28%

Nigeria’s equities market extended its record-breaking run on Tuesday as stronger investor activity pushed the Nigerian Exchange (NGX) market capitalisation to N162.68 trillion and lifted the year-to-date return to 61.05 per cent.

The NGX All-Share Index (ASI) gained 0.18 per cent to close at 250,614.66 points, extending the market’s advance from a 60.76 per cent year-to-date gain in the previous session.

The latest rise came with a significant increase in trading activity, suggesting that the market’s sustained rally is attracting stronger participation rather than being driven solely by thin trading in selected stocks.

Total volume traded rose 45.82 per cent to 837.26 million shares, while transaction value increased 27.60 per cent to N48.57 billion.

Fidelity Bank led the volume chart with 165.43 million shares traded, while Zenith Bank dominated value turnover with transactions worth N13.73 billion.

Market breadth remained positive, with 38 stocks gaining against 33 decliners, giving a breadth ratio of 1.15 times.

Sovereign Trust Insurance was the strongest gainer, rising 9.95 per cent, while Multiverse Mining and Exploration led the decliners with a 9.86 per cent fall.

The advance was driven largely by banking stocks, with Stanbic IBTC rising 7.09 per cent, United Bank for Africa gaining 4.07 per cent and Zenith Bank climbing 2.64 per cent.

The gains in the banking sector are significant because lenders remain among the most actively traded and highly capitalised companies on the NGX, with investors increasingly positioning for stronger earnings and dividend prospects following the sector’s recapitalisation.

However, the performance also shows the increasingly selective nature of the rally. MTN Nigeria fell 4.49 per cent, while Mansard Insurance and Champion Breweries dropped 6.67 per cent and 8.68 per cent, respectively, showing that the broader market advance is not lifting every stock.

The NGX’s latest performance also comes after the market gained 2.78 per cent during the previous week, pushing market capitalisation to N162.16 trillion. The continued advance means the exchange has added substantial value to listed equities this year, increasing wealth for investors but also raising questions about valuations after such a rapid appreciation.

The higher turnover is therefore an important development. A strong market rally supported by rising volumes and transaction values tends to provide greater liquidity for investors and can make it easier for companies to raise capital through the exchange.

But as share prices rise rapidly, investors are likely to place greater emphasis on corporate earnings, dividends and balance-sheet strength to determine which stocks can justify further gains.

The performance of the NASD OTC market was markedly weaker. Its Securities Index fell 2.22 per cent to 4,412.33 points, while market capitalisation declined to N2.65 trillion and its year-to-date return fell to 24.51 per cent.

For the NGX, the combination of a 61.05 per cent year-to-date return, N162.68 trillion market capitalisation and stronger trading activity marks another powerful phase in Nigeria’s equity-market rally.

The challenge for the market now is to convert rising valuations and investor appetite into deeper liquidity and sustained capital formation, rather than allowing the rally to become increasingly dependent on momentum and speculative positioning.