The Nigerian stock market experienced a surge of positive activity on Thursday, building upon the momentum from the previous day’s recovery. Investors demonstrated renewed confidence, particularly in insurance and banking stocks, propelling the market capitalization to a substantial N76.6 trillion, a significant increase of N403 billion from Wednesday’s N76.2 trillion. This uptrend pushed the All-Share Index (ASI) higher by 0.53 percent, closing at 120,977.20 points. This positive performance signifies not only a one-week gain of 0.17 percent but also a more impressive four-week surge of eight percent, contributing to a robust year-to-date return of 17.54 percent. The market’s positive trajectory underscores growing investor optimism and renewed interest in Nigerian equities.
The bullish sentiment permeated various sectors of the Nigerian Exchange Limited (NGX). The Insurance Index spearheaded the gains, exhibiting a remarkable 2.76 percent increase. This was closely followed by the Banking Index, which climbed by 1.29 percent, demonstrating the strong appeal of financial institutions to investors. Other sectors also participated in the rally, with the Consumer Goods Index rising by 0.74 percent, the NGX Pension Index appreciating by 0.75 percent, and the Oil and Gas Index edging up by 0.69 percent. This broad-based growth across diverse sectors indicates a healthy and resilient market underpinned by strong fundamentals and positive investor sentiment.
Trading activity on Thursday reflected the positive market mood, albeit with a slight decline in volume. A total of 933.4 million shares valued at N29.3 billion were traded in 24,207 deals. While the volume of shares traded decreased by 11 percent compared to the previous day, the turnover value soared by a remarkable 141 percent, indicating a preference for higher-priced stocks. The number of deals also saw a modest increase of 10 percent. This shift in trading dynamics suggests that investors are strategically targeting specific stocks with strong growth potential, rather than focusing on sheer volume.
Market breadth, a crucial indicator of overall market sentiment, closed positive, with 54 gainers outpacing 15 losers out of the 128 listed equities that participated in the day’s trading. This positive breadth further reinforces the bullish sentiment prevailing in the market and suggests a potential for continued upward momentum. The substantial number of gainers signifies that the positive sentiment was widespread across various stocks and sectors.
The top-performing stocks of the day showcased a mix of companies across different sectors. Berger Paints led the gainers’ chart with a 10 percent surge, closing at N33.00 per share. It was accompanied by Academy Press, Deap Capital Management & Trust, and Guinea Insurance, all achieving a 10 percent increase. Unilever and FTN Cocoa also registered substantial gains of 9.96 percent and 9.95 percent, respectively. These impressive gains highlight the strong performance of individual companies within the broader market rally.
Conversely, the laggards of the day included Neimeth International Pharmaceuticals, which experienced the largest decline, shedding 8.49 percent to close at N7.22 per share. Legend Internet followed suit with a 7.98 percent drop, while CWG and Sovereign Trust Insurance declined by 4.5 percent and 4.35 percent, respectively. These losses, although present, were overshadowed by the significant number of gainers and the overall positive market sentiment. The performance of these individual stocks underscores the importance of careful stock selection and risk management within a dynamic market environment. Furthermore, the relatively small number of losers suggests that the negative sentiment was confined to specific stocks rather than reflecting a broader market downturn.
The trading volume and value statistics provide further insights into the dynamics of the day’s trading activity. Universal Insurance topped the volume chart with 67.3 million shares traded, followed by Access Holdings with 62.6 million shares, Chams with 59.7 million shares, and Japaul Gold with 49.5 million shares. These figures indicate significant investor interest in these specific stocks, potentially driven by company-specific news, positive earnings reports, or anticipated future growth prospects. In terms of value traded, Seplat led with N13.56 billion, followed by GTCO with N3.26 billion, Nigerian Breweries with N1.81 billion, Access Holdings with N1.46 billion, and Zenith Bank with N819.7 million. These figures reflect the substantial financial commitment of investors in these companies, further highlighting their perceived value and potential within the market. The overall market performance and the specific performance of individual stocks underscore the opportunities and challenges inherent in navigating the Nigerian stock market.
