The Nigerian Exchange experienced a remarkable surge on Tuesday, closing on a decidedly bullish note as the market capitalization soared past the N70 trillion mark. This impressive performance was fueled by renewed investor confidence and a surge of buying interest in heavyweight stocks, particularly Airtel Africa, and key players within the insurance sector. The All-Share Index (ASI) reflected this positive momentum, climbing by 1.57 percent to reach 111,606.22 basis points, representing a significant 1,721.29-point increase. This upswing translated into a substantial N1.09 trillion boost to the market capitalization, which closed at an impressive N70.38 trillion, a significant leap from the N69.29 trillion recorded in the preceding trading session.
The market’s upward trajectory was largely propelled by the remarkable performance of Airtel Africa, a prominent telecommunications company, which witnessed a 10 percent surge in its share price, closing at N2,372.50 per share. The insurance sector also played a pivotal role in driving the market’s positive momentum, with companies like Cornerstone Insurance and AXA Mansard registering notable gains. Cornerstone Insurance saw its share price appreciate by 8.63 percent to close at N3.40, while AXA Mansard recorded a 5.88 percent increase, closing at N9.00 per share. These gains, coupled with the positive performance of other listed companies, contributed significantly to the overall market upswing.
A total of 126 equities participated in the day’s trading activities, reflecting a diverse range of companies across various sectors. Out of these, 36 stocks closed in the green, indicating price increases, while 21 stocks recorded losses, and 69 remained unchanged. Among the top gainers were Omatek Ventures, which saw a 9.23 percent increase in its share price, and Nigerian Aviation Handling Company, whose share price climbed by 8.39 percent. United Property Development Company also registered a significant gain, with its share price appreciating by 6.47 percent. These gains showcased the broad-based nature of the market’s positive performance, extending beyond the telecommunications and insurance sectors.
Conversely, the market also witnessed some declines, with McNichols leading the laggards, experiencing a 9.80 percent drop in its share price. Computer Warehouse Group and Champion Breweries also recorded significant losses, with their share prices declining by 9.50 percent and 7.38 percent respectively. Red Star Express and Jaiz Bank also joined the list of decliners, albeit with less pronounced losses. These declines served as a reminder of the inherent volatility of the stock market, even within a predominantly bullish environment.
Despite the overall positive performance of the market, trading activity experienced a slight dip. Investors exchanged 409.57 million shares valued at N9.87 billion in 15,992 deals. This represented a marginal 1 percent decrease in volume, a more pronounced 11 percent decline in turnover, and a significant 19 percent fall in the number of deals compared to the previous trading day. This decline in trading activity, despite the bullish sentiment, could potentially indicate a wait-and-see approach by some investors, perhaps anticipating further market movements before making additional investments.
A sectoral analysis of the market performance further highlighted the positive sentiment prevalent across key indices. The Insurance Index led the gainers with a 2.23 percent increase, followed closely by the Main Board Index, which advanced by 2.20 percent. The Pension Index and Top 30 Index also registered notable gains, climbing by 1.55 percent and 1.54 percent respectively. The Banking Index and the Oil & Gas Index also contributed to the positive trend, recording gains of 0.84 percent and 1.41 percent respectively. This broad-based sectoral performance underscored the overall strength of the market and the positive investor outlook across various segments of the economy. Furthermore, a year-to-date analysis reveals a sustained positive trajectory, with the All-Share Index gaining 8.43 percent, the Main Board Index recording a 10.86 percent gain, and the Pension Index surging by an impressive 16.08 percent. This sustained growth over the year reflects a continued positive outlook for the Nigerian economy and a strong investor confidence in the market’s potential. This positive momentum, coupled with the recent surge, positions the Nigerian Exchange for continued growth and reinforces its role as a key driver of economic activity in the country.
