Nigerian equities add N406bn as Aradel, Stanbic lead market rally

NIGERIA’S equities market extended its positive run on Friday, with investors’ renewed interest in fundamentally strong stocks pushing total market capitalisation up by N405.67 billion.

The Nigerian Exchange (NGX) All-Share Index rose by 604.22 points, representing a 0.25 percent gain, to close at 246,992.44 points.

The advance lifted the market’s capitalisation to N159.56 trillion as investors continued to reposition across selected blue-chip and mid-cap stocks, particularly in the oil and gas, consumer goods and banking segments.

Aradel Holdings, Nigerian Breweries and Stanbic IBTC Holdings were among the stocks that attracted buying interest during the session.

Trading activity also strengthened considerably. A total of 2.24 billion shares valued at N73.41 billion changed hands in 42,709 deals, representing increases of 416.66 percent in volume and 150.55 percent in transaction value compared with the previous session.

Fidelity Bank Insurance Plc (FTGINSURE) dominated trading volume, accounting for 71.33 percent of total shares traded. United Bank for Africa (UBA) followed with 5.51 percent, while Consolidated Hallmark Holdings (CONHALLPLC), Zenith Bank and Access Holdings accounted for 2.59 percent, 1.52 percent and 1.24 percent, respectively.

UBA emerged as the most traded stock by value, contributing 14.84 percent of the total value of transactions recorded during the session.

Market performance, however, remained mixed despite the overall gain, with 28 stocks advancing against 31 decliners.

Abbey Mortgage Bank and Royal Exchange led the gainers, each rising 10 percent. Nigerian Breweries followed closely with a 9.93 percent gain, while John Holt, Daar Communications, Ellah Lakes and Champion Breweries also recorded significant increases.

On the losing side, Red Star Express and HMCALL posted the steepest declines, shedding 10 percent each. International Glass Industries fell 9.97 percent, while Juli, University Press, Sovereign Trust Insurance and Beta Glass also recorded notable losses.

Sectoral performance was broadly positive, with three of the NGX’s five major sectors closing higher.

The consumer goods index led the sectoral advance, gaining 1.28 percent, followed by the oil and gas sector with a 1.12 percent increase and banking stocks, which rose 0.44 percent.

The insurance sector declined by 1.05 percent, while industrial goods stocks fell 0.64 percent.

The session suggests that investors remain willing to deploy funds selectively into stocks with strong earnings prospects and favourable fundamentals, even as the broader market continues to experience mixed sentiment.