Nigerian Exchange Hits Record High as Investors Inject ₦583bn

The Nigerian Exchange (NGX) saw a great performance this week, with the All-Share Index reaching historic heights and market players adding ₦583 billion in value.

Monday’s trading session marked the start of a persistent rising trend, which has helped to boost investor confidence.

The benchmark index rose 924.50 points, or 0.85%, to a record high of 109,953.12. This milestone underscores market participants’ increased optimism and demonstrates the robustness of Nigeria’s capital market.

Despite the positive price moves, trading activity followed a different pattern. Transaction volumes dropped by 34.98%, while total trade value declined by 38.78%. In a total of 19,775 trades, 637.54 million shares valued at ₦11.09 billion were traded.

Several blue-chip and mid-tier corporations fueled the market’s rising trend. ARADEL emerged as the session’s outstanding performer, with gains of 9.98%. Other significant performers were UPL (+9.86%), ABCTRANS (+8.43%), LINKASSURE (+8.16%), and CILEASING (+7.32%).

The increase was fueled by smart buying in fundamentally good companies, with investors particularly interested in ARADEL, BUAFOODS, and other high-quality stocks. This chosen strategy contributed greatly to the overall market capitalization increase.

FIDELITYBK led trading volumes, accounting for 11.36 percent of total equity transactions. CUSTODIAN came in second with 9.02%, while ACCESSCORP accounted for 8.73% of volume activity. GTCO and ZENITHBANK rounded out the top five most actively traded equities by volume.

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GTCO led in value terms, accounting for 15.76% of total transaction value, indicating that despite varied sectoral performance, large banking stocks continue to be popular.

The day ended with favorable market breadth, with 33 gaining stocks and 29 dropping issues. However, not all equities joined the rise, with TRIPPLEG leading the decliners at -10.00%. Other noteworthy losers were MRS (-9.97%), CUSTODIAN (-9.63%), and VFDGROUP (-9.32%).

Sectoral performance was varied across the five major indices. The oil and gas industry gained 3.02%, while consumer goods rose 2.20%. Insurance fell 1.06%, while banking fell 0.02%. The industrial sector has stayed unchanged.

The market capitalization increased by ₦582.90 billion, surpassing ₦69 trillion and reflecting a 0.85% growth. This performance reflects investors’ continued appetite for high-quality equities, as well as their continued confidence in Nigeria’s economy.

The combination of record-high index levels and selective buying patterns points to a maturing market in which investors prioritize underlying value above speculative trading. This trend is promising for long-term market growth and stability.