Emmanuel OchayiThe Nigerian stock market witnessed a notable turnaround last week, recording a N319 billion gain after weeks of mixed performances. The All-Share Index (ASI) increased by 0.72% to close at 98,210.75 points, while the total market capitalisation hit N59.534 trillion, signaling renewed investor confidence.
According to analysts, the rise in the stock market was fueled by increased activity in key sectors, particularly the financial services sector, which accounted for most of the transactions.
Join our WhatsApp ChannelA trader at Lagos-based Zenith Securities, John Eze, noted, “The positive performance reflects growing investor interest, especially in the banking sector. The momentum may continue if key macroeconomic indicators remain stable.”
Trading Volume and Value Surge in the Stock Market
Trading activity also showed strong growth. Investors traded 3.893 billion shares valued at N87.749 billion across 43,868 deals, marking a significant rise from the previous week’s 3.194 billion shares worth N54.850 billion in 45,112 deals.
The financial services sector led the charge, with 2.709 billion shares worth N51.027 billion exchanged in 20,017 deals. This accounted for 69.58% of the total volume and 58.15% of the total value traded in the stock market.
Other active sectors included the consumer goods sector, which recorded 403.658 million shares worth N3.844 billion, and the industrial goods sector, with 198.360 million shares valued at N10.328 billion.
Eze remarked, “Banking stocks have become attractive due to better-than-expected earnings, and this is driving significant volume in the financial sector.”
Top Gainers and Losers in the Stock Market
Investor sentiment remained positive, with 51 stocks appreciating in value compared to 32 the previous week. Conversely, 30 stocks declined, a drop from 46 in the prior week, while 72 stocks remained unchanged, down from 75.
READ ALSO: Nigerian Stock Market Grows By 31.34%, Ranks Among Africa’s Top Four Exchanges
Among the top gainers was Golden Guinea Breweries Plc, which saw a 45.95% increase. Sunu Assurances Nigeria Plc followed with a 29.49% rise. Other key gainers included Lafarge Africa Plc, which grew by 27.59%, Secure Electronic Technology Plc (27.27%), and Cornerstone Insurance Plc (25.00%).
On the flip side, Learn Africa Plc led the decliners, dropping by 11.75%, while Aradel Holdings Plc shed 10.06%. eTranzact International Plc and Red Star Express Plc both declined by 10.00%, with John Holt Plc and Daar Communications Plc falling by 9.98% and 6.56%, respectively.
An analyst at FBN Quest, Mary Okon, highlighted, “While certain stocks faced declines, the broader market trend shows investor preference for growth-driven stocks, especially in the brewery and insurance sectors.”
Impact of New Federal Government Savings Bonds on the Stock Market
The listing of new Federal Government of Nigeria Savings Bonds on December 6 also influenced market activities. Two bonds were introduced: the FGS NOV 2026 with a coupon rate of 17.440% and the FGS NOV 2027 with a coupon rate of 18.440%.
A total of N760.189 million worth of the 17.440% bond was issued, while the 18.440% bond recorded an issuance of N2.423 billion. The two bonds have 2-year and 3-year tenors, with quarterly coupon payments.
Market analysts believe the listing of these bonds could provide an alternative investment option for retail investors, potentially reducing pressure on the stock market.
Global Market Influence on the Nigerian Stock Market
The Nigerian stock market was also impacted by global developments. The global equity market experienced a boost following stronger-than-expected US economic data.
The US non-farm payroll report revealed a 227,000-job increase in November, surpassing earlier projections. This global optimism was reflected in the MSCI World equity index, which rose by 1.1% week-on-week.
The positive sentiment in global equity markets played a role in supporting Nigeria’s stock market recovery. An economist at Vetiva Research, Samuel Adeoye, stated, “Global equity gains often trigger investor optimism in emerging markets, and Nigeria is no exception.”
Outlook for the Nigerian Stock Market
The N319 billion gain seen in the Nigerian stock market marks a significant rebound following a N185 billion loss in the previous week. With the All-Share Index on an upward trajectory, investors are hopeful that the stock market will maintain this positive momentum.
Market experts say that key indicators such as inflation, interest rates, and corporate earnings reports will shape the market’s direction in the coming weeks. Investors are advised to keep an eye on developments in the financial and consumer goods sectors, which continue to show strong performance.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
