Emmanuel OchayiNigeria’s equity market continued its upward momentum on Tuesday, gaining 0.82% on the Nigerian Exchange Limited (NGX). This growth pushed the NGX All-Share Index (ASI) from 101,356.15 points to 102,186.03 points, marking a significant rally ahead of the Christmas holidays.
The equity market capitalisation also grew, increasing from N61.440 trillion to N61.944 trillion, adding N504 billion to investors’ wealth.
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The rally was largely driven by gains in several top-performing stocks. MRS led the market surge, with its share price climbing from N198 to N217.80, a 10% increase. Ikeja Hotel followed closely, seeing its price rise from N10.05 to N11.05, a 9.95% gain.
Other contributors to the equity market’s growth included:
- Multiverse Mining and Exploration, which increased from N5.05 to N5.55, gaining 50 kobo or 9.90%.
- Skyway Aviation Handling Company, which rose from N27.95 to N30.70, adding N2.75 or 9.84%.
- John Holt, which gained 57 kobo or 9.69%, moving from N5.88 to N6.45.
Increased Trading Activity in the Equity Market
Trading activity was robust, with investors exchanging 431,779,441 shares valued at N18.262 billion across 8,369 deals. Key players such as UBA, Universal Insurance, Dangote Cement, C&I Leasing, and GTCO recorded high trading volumes, reflecting strong investor interest.
A consistent focus on undervalued stocks and fundamentally strong companies drove the heightened activity, signalling a positive outlook for the equity market.
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Analysts’ Perspective on Equity Market Performance
Market analysts attribute the sustained bullish trend to investor optimism and the end-of-year trading cycle. Vetiva Research stated in a note to investors, “The current sentiment is expected to persist, with the market likely to close in the green as investors continue to focus on sound stocks.”
This optimistic sentiment reflects broader confidence in Nigeria’s equity market, despite global economic uncertainties.
Factors Supporting the Rally
Several factors contributed to the equity market’s performance:
- Seasonal Trends: The Santa Claus rally effect is driving investor confidence as the year closes.
- Economic Stability: Local economic indicators have shown resilience, encouraging market participation.
- Focus on Fundamentals: Investors are targeting stocks with strong fundamentals, ensuring sustained demand.
What Lies Ahead for the Equity Market
As the market heads into the Christmas holiday break, analysts predict a continuation of the positive trend. The market remains attractive to both local and foreign investors, particularly as undervalued stocks present significant opportunities for growth.
When trading resumes, the focus on fundamentally sound stocks is expected to sustain the momentum, further boosting investor confidence and market performance.
The 0.82% gain in Nigeria’s market reflects strong investor interest and growing confidence in the NGX. With increasing market capitalisation and heightened trading activity, the market is set to remain a key focus for investors seeking value and growth opportunities.
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.
