Emmanuel OchayiThe Nigerian Equity Market continues to rise as the local currency strengthens against the US dollar, attracting more investors to naira assets. The ongoing full-year 2024 earnings season has also contributed to increased market activity, fueling bargain hunting at the Nigerian Exchange Limited (NGX).
For four consecutive trading sessions, the market has recorded positive closes. On Thursday, the market saw another increase of 0.10 percent, adding N66 billion to the total market capitalization.
Join our WhatsApp ChannelA stock analyst at NGX, speaking about the trend, said, “The appreciation of the naira is playing a key role in boosting confidence in the equity market. Many investors are shifting towards stocks as they see more value in naira assets.”
Stock Performance Pushes Market Higher
In Thursday’s trading session, stocks like Eterna, Cadbury, Fidson, and UPDC led the market gains. Investors in 15,450 transactions exchanged 537,188,094 shares valued at N23.025 billion. Active stocks for the day included Access Holdings, Sterling Bank, Zenith Bank, FBN Holdings, and UPDC.
READ ALSO: Nigeria’s Equity Market Rises For Third Day As Investors Buy FBN Holdings, Eterna, Cadbury
Eterna saw the highest rise, moving from N30.35 to N33.35, a gain of N3 or 9.88 percent. Cadbury followed closely, climbing from N24.30 to N26.70, an increase of N2.40 or 9.88 percent. Fidson’s share price rose from N17.40 to N19.10, gaining N1.70 or 9.77 percent, while UPDC increased from N2.15 to N2.36, adding 21 kobo or 9.77 percent.
A market participant at NGX, commenting on the stock performance, said, “Investors are taking positions in fundamentally strong stocks as they anticipate further gains. The market is responding positively to economic developments.”
Market Capitalization and Index Growth
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and Equity Market capitalization both recorded gains on Thursday. The ASI increased from 105,324.89 points to 105,430.15 points, while the market capitalization rose from N65.221 trillion to N65.287 trillion.
Since the start of the year, the market has grown by 2.43 percent. For February alone, the increase stands at 0.89 percent.
A financial analyst stated, “With the naira gaining strength and corporate earnings season ongoing, investors remain optimistic about further growth in the Equity Market.”
The sustained market rally signals renewed confidence among investors, with many looking at naira-denominated assets for long-term gains.
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.
