The Nigerian stock market concluded a shortened trading week on a buoyant note, registering a substantial gain of ₦486 billion in market capitalization. Trading activities were limited to only three days due to public holidays declared for Eid Kabir and Democracy Day, effectively condensing market operations. Despite the reduced trading period, investor sentiment remained positive, propelling the market to a higher close. The surge in market capitalization underscored renewed confidence in the Nigerian economy and reflected the overall positive momentum observed during the three trading days. This noteworthy increase signals a potentially robust trajectory for the market in the coming weeks, should the positive sentiment persist.
The All-Share Index (ASI), a key indicator of market performance, mirrored the upward trend, gaining 770.43 points, or 0.67 percent, to close at 115,429.54. This positive movement in the ASI further solidified the overall bullish sentiment prevailing in the market. The growth was primarily driven by increased investor interest in medium and large-cap stocks across various sectors. Notable companies that contributed to this positive performance included May & Baker, Infinity Trust, Stanbic IBTC, and MRS, among others. Their strong performance indicates investor confidence in these companies’ growth prospects and their potential to deliver robust returns.
Market breadth, a measure of the overall market sentiment, also closed positive, with 50 gainers outpacing 22 losers. This positive breadth further reinforces the overall bullish sentiment prevailing in the market, indicating a broader participation of stocks in the upward movement. The strong performance of these stocks further underscores the positive momentum observed in the market and suggests a potentially broader-based recovery. This positive market breadth, coupled with the increase in market capitalization and ASI, paints a picture of a resilient and optimistic market.
Among the top gainers, May & Baker and Infinity Trust Mortgage Bank both recorded a 10 percent increase in their share prices, closing at ₦15.40 and ₦7.70 per share, respectively. Livingtrust Mortgage Bank also saw a 10 percent rise, closing at ₦5.72 per share. Stanbic IBTC and MRS also posted significant gains, climbing 9.98 percent and 9.94 percent to close at ₦79.35 and ₦155.90 per share, respectively. These substantial gains reflect the heightened investor interest in these companies, driven by factors such as strong financial performance, positive industry outlook, or anticipated corporate actions.
Conversely, Northern Nigeria Flour Mills led the decliners, shedding 10 percent of its share value to close at ₦112.55 per share. Conoil, Nigerian Enamelware, University Press, and John Holt also experienced significant declines, dropping by 9.99 percent, 9.98 percent, 9.84 percent, and 9.49 percent, respectively. These declines could be attributed to various factors, including company-specific news, profit-taking by investors, or negative sentiment within their respective sectors. The contrasting performances of gainers and losers highlight the dynamic nature of the stock market and the influence of various factors on individual stock prices.
Trading volume and value also saw a significant increase compared to the previous trading day. A total of 933.26 million shares worth ₦17.95 billion were traded across 20,500 deals, marking a substantial increase from the 471.15 million shares valued at ₦14.19 billion traded in 20,538 deals on Wednesday. This surge in trading activity reflects increased investor participation and heightened interest in the market, likely driven by the positive performance of key stocks and the overall bullish sentiment. The increased liquidity observed in the market further reinforces the positive trend and suggests a continued robust trading environment.
Tantalizer dominated trading activity, with 420.45 million shares worth ₦946.06 million exchanging hands. GTCO, Zenith Bank, Computer Warehouse Group, and First Holdco also recorded significant trading volumes, further contributing to the overall market activity. The high trading volumes in these stocks reflect their prominence within the market and the significant investor interest they command. The robust trading activity across various sectors signals a healthy and active market, further underpinning the positive outlook for the Nigerian stock market.
