Stock Market Gains N2.67trn on Oil& Gas Stocks Rally 

Kayode Tokede

The Nigerian stock market  last appreciated by N2.67trillion in its week-on-week (WoW) performance over sharp rally in the Oil and Gas sector. 

The NGX All-Share Index rose 2.15 per cent WoW to settle at 196,968.15basis points, bringing year-to-date returns to 26.58 per cent

Also.  market capitalisation of listed companies moved  to N126.43 trillion, up from N123.76 trillion the previous week. 

The surge added an estimated N2.67 trillion to investors’ wealth, reflecting sustained confidence in the domestic market.

The Oil and Gas sector emerged as the standout performer, climbing 9.43 per cent during the week. 

The rally was driven by strong buying interest in Aradel Holdings and Oando, fueled by rising crude oil prices and escalating geopolitical tensions in the Middle East. 

Brent crude climbed to around $84 per barrel, while West Texas Intermediate crude rose to about $78 per barrel, marking the fifth consecutive day of gains. 

Supply disruptions, attacks on oil tankers, and slowed shipping through the Strait of Hormuz tightened global crude availability, boosting sentiment for energy equities. In addition, the surge in oil prices could improve Nigeria’s foreign exchange inflows and government revenue, making the sector particularly attractive to investors.

Industrial Goods also posted strong gains, rising 3.89 per cent, supported by renewed interest in Premier Paints Nigeria, Lafarge Africa, and Dangote Cement. Consumer Goods recorded a modest 1.12 per cent increase, driven by buying in PZ Cussons Nigeria and Cadbury Nigeria, while the Banking sector inched up 0.24 per cent on renewed interest in Stanbic IBTC Holdings, Zenith Bank, and Guaranty Trust Holding Company. 

The Insurance sector, however, declined 1.88 percent as selling pressure persisted in AXA Mansard Insurance, Universal Insurance, and Cornerstone Insurance.

At the stock level, Fortis Global Insurance led the gainers with a remarkable 58.5 per cent jump, followed by Premier Paints Nigeria with a 32.7 per cent gain, Eterna Oil and Gas with 28.7 per cent, Nigerian Exchange Group with 21.7 per cent, and United Africa Company of Nigeria with 20.6 per cent. 

On the downside, McNichols Consolidated dropped 24.4 per cent, Mecure Industries lost 18.9 per cent, Multiverse Mining and Exploration fell 18.7 per cent, Jaiz Bank declined 18.4 per cent, and Omatek Ventures dropped 15.4 per cent, reflecting pockets of profit-taking in counters that had seen prior gains.

Trading activity was generally subdued as investors adopted a cautious approach, with total volume and turnover declining 32.52 percent and 9.51 per cent respectively. A total of 3.70 billion shares valued at N177.76 billion changed hands across 371,317 deals, indicating selective accumulation rather than broad-based buying. Market breadth remained negative at 0.76x, with 44 gainers against 58 decliners, highlighting the selective nature of the rally.

Market analysts attributed the gains to a combination of strong investor appetite for fundamentally sound stocks, supportive global oil prices, and improving earnings expectations among large-cap banks and industrial companies. Investors were particularly drawn to companies capable of sustaining stable revenue streams despite the challenging macroeconomic environment marked by high inflation and elevated interest rates.

The week’s rally also reflected broader market resilience, as the equities market maintained its bullish structure despite intermittent profit-taking. 

Financial services stocks continued to dominate trading activity, with investors seeking exposure to banks with stronger capital positions and ongoing recapitalization plans. Industrial and consumer goods stocks benefited from renewed confidence in companies with solid fundamentals, while the energy sector drew significant attention from investors positioning for higher crude prices.

Looking ahead, analysts at Cowry Assets expect a cautiously positive outlook for equities. Investors are likely to continue targeting fundamentally strong, undervalued, and large-cap stocks while managing risk through selective profit-taking. 

The pace of gains may be moderated by subdued trading activity, but sustained institutional interest, positive earnings expectations, and supportive global oil prices are likely to underpin the market in the coming weeks.