NGX Extends Rally as Blue-Chip Stocks Drive Gains

The Nigerian stock market extended its winning streak last week as renewed demand for blue-chip stocks pushed the NGX All-Share Index higher. Strong buying interest in large-cap companies across the banking, consumer goods and industrial sectors helped sustain the market’s bullish momentum and reinforced positive investor sentiment.

The NGX All-Share Index rose by 1.6 per cent week-on-week to close at 247,357.40 points, up from 243,463.13 points. At the same time, market capitalisation increased by ₦2.531 trillion, ending the week at ₦159.588 trillion, compared with ₦157.057 trillion in the previous week.

Market sentiment also received a boost following Dangote Refinery’s announcement of a successful $2.5 billion private equity placement. The transaction was reportedly 3.7 times oversubscribed, highlighting strong institutional interest in major Nigerian assets ahead of the company’s planned stock market listing in September.

Trading activity strengthened significantly during the week. Investors exchanged 4.433 billion shares worth ₦306.143 billion in 255,589 deals, compared with 2.819 billion shares valued at ₦182.499 billion traded in 226,729 deals the previous week.

The Financial Services Industry dominated market activity, accounting for 3.422 billion shares worth ₦207.206 billion in 117,545 deals. This represented 77.18 per cent of total trading volume and 67.68 per cent of total market value. The Consumer Goods Industry followed with 201.978 million shares valued at ₦17.171 billion, while the ICT Industry recorded 169.481 million shares worth ₦21.194 billion.

The three most actively traded stocks by volume were First Holdco Plc, Access Holdings Plc and Guaranty Trust Holding Company Plc. Together, they accounted for 2.151 billion shares valued at ₦170.793 billion in 44,768 deals, contributing 48.51 per cent of total trading volume and 55.79 per cent of total transaction value.

Investor interest in the financial services sector remained strong after the disclosure that Olufemi Otedola acquired an additional 706.13 million shares in First Holdco Plc. The development generated significant trading activity and further strengthened the sector’s leadership during the week.

Looking ahead, analysts at InvestData Consulting Limited said the market outlook remains cautiously optimistic. They expect the positive trend to continue, although investors are likely to focus on companies with strong fundamentals, attractive valuations and positive corporate developments as the market consolidates.

What sectors do you think are likely to drive the Nigerian stock market’s next phase of growth?