Nigeria’s stock market gained N779 billion on Wednesday after rising by 1.17%. This marks its highest daily gain since the start of the month. The surge was largely driven by stocks such as Transcorp Hotels, VFD Group, Eterna, Ikeja Hotel, and Honeywell Flour Mills.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) rose from 106,574.98 points recorded on the previous trading day to 107,822.53 points. Similarly, the equities market capitalization increased from N66.495 trillion to N67.274 trillion.
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VFD Group recorded a significant price increase, moving from N48 to N52.80, adding N4.80 or 10 percent. Ikeja Hotel’s share price rose from N13.50 to N14.85, gaining N1.35 or 10 percent.
Other stocks that contributed to the market’s rise included Honeywell Flour Mills, which climbed from N11.51 to N12.66, adding N1.15 or 9.99 percent. Transcorp Hotels increased from N114.65 to N126.10, gaining N11.45 or 9.99 percent. Eterna’s share price moved from N44.30 to N48.70, up by N4.40 or 9.93 percent.
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Strong Trading Activity in the Stock Market
The stock market witnessed increased trading activity as investors exchanged 462,144,552 shares in 15,629 deals. The total value of these transactions stood at N10.233 billion. Among the most actively traded stocks were Ellah Lakes, Sterling Financial Holdings Company, Zenith Bank, Access Holdings, and AIICO Insurance.
A stockbroker at NGX, who requested anonymity, said, “The market is responding positively to investor confidence and strong corporate performances. Stocks in key sectors, especially in consumer goods and financial services, continue to attract buying interest.”
Another trader, John Adewale, noted, “We have seen increased liquidity in the market, and this has fueled demand for high-performing stocks. Investors are looking for value, and the movement in share prices reflects this sentiment.”
Stock Market’s Performance in 2024
The market’s year-to-date (YtD) return increased to 4.76 percent. It has gained 1.78 percent this week and 3.18 percent this month.
Financial analyst, Bayo Ogunleye, explained, “The market’s performance this month shows renewed optimism. If this trend continues, we could see stronger returns before the end of the quarter.”
The stock market remains a key indicator of economic trends, and with sustained investor interest, more gains could be recorded in the coming weeks.
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.
