Emmanuel Ochayi
The Nigerian equity market has reached a major milestone as its capitalisation surpassed N60 trillion at the close of trading on Friday. This achievement follows a surge in share prices of key stocks, including Aradel, Caverton, and Ikeja Hotel.
The equity capitalisation climbed by N375 billion, pushing the total to N60.2 trillion from Thursday’s N59.8 trillion. This rise marked a strong performance on the trading floor, with heightened investor activity driving the growth.
Join our WhatsApp ChannelAll-Share Index Sees Substantial Rise
The benchmark All-Share Index (ASI) also recorded a significant increase, closing at 99,378.06, up from the previous day’s 98,760.59. This indicates increased investor confidence in the equity market, supported by strong buying pressure on key stocks.
Market Breadth Stays Positive
Market breadth remained positive as 37 stocks saw price increases, while 14 recorded declines. A total of 72 stocks were unchanged at the end of the five-hour trading session. This positive breadth reflects a favorable environment for investors and signals possible future gains in the equity market.
Key Gainers in the Equity Market
Leading the charge among the gainers were ARADEL, Caverton, and Ikeja Hotel. Each recorded a 10% increase in share prices. Aradel’s stock rose from N500.00 to N550.00, Caverton’s share price increased from N1.80 to N1.98, and Ikeja Hotel’s stock grew from N8.00 to N8.80. These gains contributed significantly to the overall rise in market capitalization.
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Notable Decliners in Stock Prices
Despite the upward trend, a few stocks experienced price drops. AUSTIN LAZ, ABC TRANSPORT, and ROYALEX led the list of decliners. AUSTIN LAZ’s stock price fell by 10% to N1.62 from N1.80. ABC TRANSPORT dropped 8% to N1.15, while ROYALEX saw a 7.69% decline to N0.60 from its previous N0.65.
Trading Volume and Value Surge
High trading volumes were recorded as Japaul Goldled with 71 million shares traded in 120 deals. E-Tranzact followed closely, trading 70 million shares in 49 deals, while Tantalizer saw 57 million shares change hands in 155 deals.
On the value index, Aradel traded stocks worth N781 million in 320 deals, while Oando traded equities valued at N732 million across 551 deals. Zenith Bank also recorded a strong performance, with shares valued at N622 million exchanged in 291 deals.
Investor Sentiment and Outlook for the Equity Market
The growth in the Nigerian equity market reflects growing investor confidence. Analysts believe the positive market breadth and increased trading activity signal sustained growth potential in the near future. The performance of Aradel, Caverton, and Ikeja Hotel. demonstrates the market’s capacity for significant short-term gains.
With the ASI approaching the 100,000 mark, market observers are optimistic about further growth. The equity market’s recent performance suggests that investors may continue to find opportunities in the coming weeks as market sentiment stays positive.
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.
