Stock Market Rebounds as Investors Gain N9.34tn in Five-Day Rally

The Nigerian stock market rebounded strongly last week, with investors gaining N9.342 trillion as renewed buying interest in blue-chip stocks reversed the losses recorded during the previous trading week.

Data from the Nigerian Exchange Limited (NGX) showed that the market capitalisation rose from N147.102 trillion to N156.444 trillion, representing a weekly gain of N9.342 trillion. The impressive recovery came after the market had shed more than N1.8 trillion in the preceding week following a wave of profit-taking that began in the final days of June.

The market's benchmark NGX All-Share Index (ASI) also recorded a strong performance, advancing by 6.4 per cent to close at 243,798.76 points, compared with 229,240.34 points recorded a week earlier.

The rally was driven largely by strong gains in heavyweight stocks, with Dangote Cement appreciating by 17.51 per cent, Aradel Holdings rising by 19.67 per cent, Airtel Africa gaining 10 per cent, while MTN Nigeria advanced by 8 per cent.

The strong performance further lifted the market's year-to-date return to 56.8 per cent, reflecting sustained investor confidence despite lingering geopolitical uncertainties affecting the global economy.

Market analysts said the bullish momentum was sustained throughout the week, with investors continuing to channel funds into fundamentally strong large-cap and medium-cap stocks. They noted that the consistent demand for blue-chip equities underscores growing confidence in the resilience of the Nigerian capital market, even as investors remain cautious about developments in the global economy.

Trading activity remained robust during the week, with investors exchanging 3.648 billion shares valued at N220.568 billion in 251,861 deals, compared with 3.821 billion shares worth N154.393 billion traded in 258,567 deals during the previous week. Although the volume of shares traded declined slightly, the value of transactions rose significantly, indicating increased investment in higher-priced equities.

The Financial Services Industry remained the most active sector on the Exchange, accounting for 2.899 billion shares valued at N147.360 billion traded in 106,603 deals. The sector contributed 79.48 per cent of the total trading volume and 66.81 per cent of the total value of equities traded during the week.

Analysts expect investors to maintain interest in fundamentally sound companies in the coming weeks as attention shifts to corporate earnings releases and broader macroeconomic developments that could shape market direction in the second half of the year.