At N8.7trn WoW Return, Stock Market Marks Third Straight Week of Gains

Kayode Tokede

The Nigerian stock market closed last week on a largely positive note, as the market capitalisation increased by N8.67 trillion to close at N139.827 trillion to sustain its rally for the third straight week.  

The performance last week was driven by buy interest in Aradel Holdings, MTN Nigeria Communication Plc and BUA Foods Plc that gained 28.9 per cent, 11 per cent  and 3.3 per cent respectively.   

As a result, the Nigerian Exchange Limited All-Share Index (NGX ASI)  advanced by 6.6 per cent to 217,131.54 basis points, bringing the month-to-date and year-to-date returns to 12.6per cent and +39.5 per cent, respectively. 

Sectors performance was broadly bullish, as the Oil & Gas (+17.6per cent), Banking (+11.9per cent), Consumer Goods (+3.4per cent) and Industrial Goods (+1.3per cent) indices advanced. The Insurance index closed the week flat.

Market breadth also closed positive, with 61 gainers compared to 36 decliners, indicating broad-based buying interest across the market. Trans-Nationwide Express led the gainers table by 60.48 per cent to close at N6.05, per share. 

Ecobank Transnational Incorporated (ETI) followed with a gain of 46.30 per cent to close at N67.30, while Stanbic IBTC Holdings went up by 36.63 per cent to close to N188.55, per share.

On the other side, Coronation Insurance led the decliners table by 14.38 per cent to close at N2.50, per share. Ikeja Hotel followed with a loss of 14.36 per cent to close at N33.40, while International Energy Insurance declined by 13.80 per cent to close at N3.06, per share.

Overall, a total turnover of 3.588 billion shares worth N195.313 billion in 254,553 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 3.361 billion shares valued at N151.948 billion that exchanged hands previous week in 229,442 deals.

The Financial Services Industry led the activity chart with 2.498 billion shares valued at N94.005 billion traded in 111,052 deals: contributing 69.62 per cent and 48.13 per cent to the total equity turnover volume and value respectively.

The Services Industry followed with 329.034 million shares worth N3.452 billion in 14,050 deals, while the Oil and Gas Industry pulled a turnover of 152.472 million shares worth N42.511 billion in 19,022 deals.

Trading in the top equities, Sterling Financial Holdings Company, Access Holdings and Zenith Bank accounted for 1.038 billion shares worth N46.081 billion in 33,067 deals, contributing 28.92 per cent and 23.59 per cent to the total equity turnover volume and value respectively. 

The Nigerian stock market, however, is expected to sustain its positive bias in the near term as investors continue to position in fundamentally sound stocks.

Analysts said demand for companies with strong balance sheets and earnings visibility is driving momentum, with market participants rotating into quality names to anchor portfolios amid improving sentiment.

On market outlook, Cowry Assets Management Limited said, “the positive momentum in the Nigerian equities market is likely to persist in the near term, supported by strong investor sentiment, improving liquidity, and sustained interest in fundamentally sound and large-cap stocks. The recent surge in trading activity suggests growing market participation, which could continue to underpin price appreciation.

“However, the pace of gains may moderate as investors begin to lock in profits following the sharp rally recorded in recent weeks. Additionally, attention is expected to remain on corporate earnings releases and macroeconomic developments, which could shape market direction. Overall, while the bullish bias is expected to be maintained, intermittent pullbacks are likely as the market consolidates recent gains.”

Looking ahead, Afrinvest Limited noted, “We expect the market to sustain its bullish momentum, supported by investor positioning ahead of the release of 2025 audited financial statements and anticipated dividend declarations.”

Analysts at Cordros Research added, “Looking ahead, attention will turn to the first wave of Q1-26 earnings releases on the NGX next week, which should begin to shape near term market direction. As results come through, investor positioning is likely to become more selective, with flows increasingly tied to earnings delivery and outlook across tickers.”