NGX hits record N163.06trn as volume jumps 90% after rate cut

Nigeria’s equities market climbed to a fresh record N163.06 trillion on Wednesday as stronger investor participation pushed the Nigerian Exchange (NGX) All-Share Index above 251,000 points and extended a rally that has already delivered more than 61 per cent to investors this year.

The market capitalisation rose by N374.14 billion to N163.06 trillion, while the All-Share Index gained 0.23 per cent to 251,191.02 points, its highest level on record.

The latest advance extended the market’s winning streak to 10 consecutive sessions and lifted the year-to-date return to 61.42 per cent, according to market data.

More significantly, trading volume surged 89.9 per cent to about 1.59 billion shares, indicating that the fresh high was accompanied by considerably stronger market participation rather than being driven solely by thin trading.

Market breadth was also firmly positive, with 43 stocks advancing against 20 decliners, suggesting that buying interest was spread across a broad section of the market.

The timing of the rally is equally important. Wednesday was the first trading session after the Central Bank of Nigeria cut its benchmark Monetary Policy Rate by 350 basis points to 23 per cent, a major shift in monetary conditions that could gradually reduce the attractiveness of fixed-income instruments relative to equities and encourage investors to reposition portfolios.

The banking sector and other major stocks remained central to the market’s momentum. Financial services stocks, alongside insurance and consumer-related counters, helped sustain the advance, while individual gainers such as Eterna, Thomas Wyatt, Critical Minerals Financing Corporation, Haldane McCall and Omatek posted gains of between 9.63 and 10 per cent.

At the other end, Caverton Offshore Support Group fell 9.09 per cent, University Press dropped 9 per cent, while WAPIC, Veritas Kapital Assurance and United Capital also recorded significant declines.

The sharp increase in volume was heavily concentrated in a few counters. Fortis Global Insurance accounted for more than half of total market volume, while Fidelity Bank and Guaranty Trust Holding Company were among the most actively traded banking stocks. GTCO dominated value turnover with about N11.9 billion in transactions.

That concentration remains important for investors even as the headline market continues to break records. A rising index supported by broad market participation provides a stronger signal of confidence, but heavy concentration in individual stocks can also exaggerate daily turnover and does not necessarily mean liquidity is evenly distributed.

The latest record also comes only days after the NGX first crossed the N162 trillion mark, underscoring the speed of the market’s expansion. The index crossed 250,000 points earlier this week as the rally gathered momentum.

For the wider economy, the surge in equities is significant because a stronger capital market improves the ability of Nigerian companies to raise equity, gives pension funds and other institutional investors more investment opportunities and can strengthen household wealth.

But with equities already up more than 60 per cent this year, the market is moving into a more demanding phase. Investors will increasingly need earnings and cash-flow growth to justify higher share prices, particularly as the benefit of lower interest rates begins to filter through other asset classes.

The record N163.06 trillion valuation therefore marks more than another milestone for the NGX. It signals that investors are increasingly pricing a lower-rate environment, stronger corporate earnings and improved confidence into Nigerian assets, while also raising the bar for companies to deliver the profits needed to sustain the rally.