Emmanuel Ochayi
The Nigerian equity market recorded a significant rise on Thursday as the All-Share Index (ASI) increased by 1.25%, adding N842 billion to market capitalisation. This growth was driven by strong performances from stocks such as Dangote Cement, PZ Cussons, and Sunu Assurances.
Dangote Cement led the gainers, with its share price moving from N431 to N474.10, a gain of N43.10 or 10%. PZ Cussons followed closely, rising from N23.60 to N25.95, marking a 9.96% increase. Sunu Assurances also gained, moving from N5.70 to N6.27, an addition of 57 kobo or 10%.
Join our WhatsApp ChannelThe Nigerian Exchange Limited (NGX) saw its All-Share Index rise from 107,822.53 points to 109,171.82 points. The total market capitalisation also increased from N67.274 trillion to N68.116 trillion. Investors actively traded 427,083,009 shares worth N9.196 billion in 16,342 deals.
Investors Share Mixed Reactions
The rise in the equity market has drawn mixed reactions from Nigerian investors. While some see the increase as a positive sign, others believe the gains are insignificant.
Emeka Uche, an investor based in Lagos, expressed satisfaction with the market’s performance. “This is a great time for investors. The rise in stocks like Dangote Cement is proof that the market is responding positively to economic policies. If this continues, more investors will regain confidence and put their money back into the stock market.”
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Another investor, Halimat Bello, shared a different view. “The increase is good, but how long will it last? The market has been very unpredictable, and some stocks that gained today may drop tomorrow. I don’t think this is enough to celebrate just yet.”
For Samuel Adegbite, a financial analyst, the rise is a step in the right direction. “This is a sign that big investors are coming back. The volume of shares traded today shows that confidence is returning. If the government maintains stable policies, we could see even greater improvements in the equity market.”
On the other hand, Bisi Oladapo, another trader, was less optimistic. “The market increased by over N800 billion, but how many retail investors actually benefit from this? The gains are mostly felt by big corporations and high-net-worth individuals. For the average Nigerian, these numbers don’t change anything.”
Market Outlook
With the market’s year-to-date return now at 6.07%, analysts believe the equity market could continue on a positive trend. This week alone, the market has risen by 3.06%, while this month’s increase stands at 4.47%.
Stocks like Universal Insurance, Wema Bank, Sterling Bank, AIICO, and Fidelity Bank remained actively traded, showing that investors are still interested in banking and insurance stocks.
As the market progresses, investors remain cautious but hopeful that the gains will be sustained. Many will be watching closely to see if the equity market can maintain this momentum in the coming weeks.
