- Dangote Sugar, Nigerian Breweries, MTN Nigeria fuel rally
Onome Amuge
The Nigerian equities market continued its ascent on Wednesday, with the All-Share Index (ASI) reaching a fresh all-time high of 111,902.61 points. This latest daily advance of 0.27 per cent saw market capitalisation increase by N187 billion to N70.56 trillion, reflecting renewed investor confidence in the face of ongoing economic adjustments.
The midweek trading session solidified a four-day monster rally that has collectively added approximately N1.94 trillion to investors’ wealth, according to market insights from brokers at Atlass Portfolios Limited.
This consistent upward trajectory is being driven by sustained buying interest in medium and large-scale equities, including bellwethers such as Nigerian Breweries (NB), Dangote Sugar Refinery (DANGSUGAR), and MTN Nigeria (MTNN).
The market breadth remained broadly positive, with 39 advancers outpacing 28 decliners, indicating a widespread optimistic sentiment across the board. Leading the gainers’ chart were Learn Africa and UPL, both notching a 10.00 per cent increase, alongside NNFM (+9.98%), Honeywell Flour (+9.95%), and Omatek (+9.86%). Conversely, Academy Press was the top loser, shedding 10.00 per cent, followed by Sky Aviation (-9.94%) and Multiverse (-9.55%).
Sectoral performance was predominantly positive, underscoring a healthy market sentiment extending across diverse economic segments. The Consumer Goods index posted a 0.96 per cent gain to lead the pack, while the Insurance sector inched higher by 0.46 per cent. The Oil & Gas sector rose by 0.24 per cent, and the Industrial sector recorded a marginal gain of 0.05 per cent. The Banking sector, however, registered a slight loss of 0.10 per cent, bucking the broader trend.
Trading activity remained vigorous, marked by a notable increase in transaction metrics. The total number of deals rose by 4.50 per cent,trading volume rose 25.05 per cent, while value was up 73.41 per cent. In total, 512.17 million shares worth N17.12 billion were exchanged across 16,711 deals, reflecting heightened liquidity and active participation from both institutional and retail investors.
An analysis of trading volumes showed Japaul Gold leading the activity chart, accounting for 11.63 per cent of total volume traded on the Nigerian bourse. Fidelity Bank (9.52%) and Custodian Investment (7.40%) also saw substantial activity. In terms of value, MTNN emerged as the most traded stock, contributing 28.47 per cent to the total value of all transactions on the exchange, reinforcing its status as a cornerstone of the Nigerian equities market.
According to analysts, the sustained rally and the strong trading volumes suggest that investors are increasingly looking to the equities market as a potential hedge against inflationary pressures and as a beneficiary of the government’s ongoing economic reforms. They also observed that strong preference for large-cap stocks points to a flight to quality, as investors seek stability and proven earning capabilities amidst a dynamic economic environment.
While the market has shown impressive resilience, analysts caution that continued vigilance over macroeconomic indicators, particularly inflation and interest rate movements, will be crucial in sustaining this momentum. The Debt Management Office’s recent successful Sukuk bond issuance, attracting significant oversubscription, also indicates a competitive landscape for capital, potentially influencing investor allocations between fixed income and equities in the coming months.
Market analysis indicates that the current trajectory indicates a strong start to the second quarter for the Nigerian equities market, positioning it as an attractive proposition for both domestic and international investors seeking growth opportunities in Sub-Saharan Africa’s largest economy. The sustained positive sentiment, coupled with a broad-based sectoral performance, also suggests a maturing market capable of delivering returns even amidst broader economic shifts.
