Demand for MTN, 28 Others Lift Nigerian Stock Market by N961bn

The Nigerian stock market continued its upward trajectory yesterday, fueled by renewed buying interest in MTN Nigeria Communications and 28 other equities. This sustained positive momentum saw the Nigerian Exchange All Share Index (NGX ASI) gain 1,498.75 basis points, a 0.62% increase, to settle at 243,958.73 points. Both the Month-to-Date and Year-to-Date returns showed robust performance, standing at +6.3% and +56.8% respectively.

Market capitalization experienced a significant boost, climbing by N961 billion to reach N156.547 trillion. Sectoral performance presented a mixed picture: the Banking, Consumer Goods, and Insurance indices closed higher, gaining 1.3%, 1.2%, and 0.3% respectively. Conversely, the Oil & Gas index saw a slight decline of 0.2%, while the Industrial Goods index remained flat.

Investor sentiment, as measured by market breadth, was positive, with 29 stocks advancing compared to 26 decliners. International Breweries led the gainers, appreciating by 10% to close at N12.10 per share. First Holdco followed closely with a 9.96% gain, ending at N69.55, while Abbey Bank rose by 9.88% to N8.90 per share. Trans-Nationwide Express and Honeywell Flour Mills also recorded gains of 9.76% and 9.68% respectively.

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the market’s sixth consecutive advance reinforces the improving risk appetite that has characterised trading over the past week.

On the downside, Thomas Wyatt Nigeria and Geregu Power were the top losers, each dropping 10% to close at N2.70 and N825.70 respectively. McNichols declined by 9.76% to N5.55, while UPDC and Neimeth International Pharmaceuticals also saw decreases.

Trading volume surged by 219.45% to 1.656 billion units, valued at N111.977 billion, across 44,780 deals. First Holdco dominated activity, with 1.258 billion shares worth N85.612 billion traded. Zenith Bank and Access Holdings followed in terms of volume.

Imperial Asset Managers Limited noted that the market's sixth consecutive advance reflects an improving risk appetite. They observed that while First Holdco's activity was extraordinary, the positive market breadth and banking sector strength suggest intact investor confidence ahead of the earnings season. The firm anticipates that investor sentiment will continue to be influenced by positioning for upcoming corporate earnings, foreign exchange market developments, and macroeconomic policy signals.

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investor sentiment is expected to remain driven by positioning ahead of upcoming corporate earnings releases, developments in the foreign exchange market, and macroeconomic policy signals.