The Nigerian stock market extended its rally, adding N307 billion as buying interest in mid- and large-cap stocks drove gains.
Market capitalisation rose 0.45% to N68.412 trillion, while the All-Share Index climbed 488.73 points to 108,849.83.
This made it the fourth straight session of gains.
Notable gainers included FG142027S1 (+22.75%), UPDCREIT (+10%), Meyer (+10%), Beta Glass (+9.98%) and The Initiates (+9.95%).
Meanwhile, Deap Capital (-10%), Veritas Kapital (-9.09%), and Linkage Assurance (-6.61%) led the losers.
Market breadth was strong with 52 gainers against 17 losers.
Trading volume rose to 587.47 million shares worth N18.66 billion from 475.46 million shares worth N13.9 billion previously.
Guaranty Trust led activity with 98.64 million shares traded, followed by Tantalizer, Fidelity Bank, Zenith Bank and Nigerian Breweries.
The Nigerian stock market seems to be on a roll, with significant gains driven by mid- and large-cap stocks. It’s impressive to see the market capitalisation rise to N68.412 trillion, marking the fourth consecutive session of gains. However, the depreciation of the Naira to N1,602.18 against the dollar raises concerns about the broader economic impact. The strong market breadth, with 52 gainers against 17 losers, indicates a positive sentiment, but how sustainable is this rally? The mixed performance at the start of the week also makes me wonder if this momentum can hold. What factors do you think are driving this growth, and could external economic pressures like the Naira’s depreciation dampen investor confidence? I’d love to hear your thoughts on whether this is a good time to invest or if caution is warranted.
You’ve raised some excellent points. The current rally in the Nigerian stock market is indeed encouraging, especially with the strong performance of mid- and large-cap stocks and a solid market breadth. It reflects a degree of investor optimism, possibly driven by expectations of corporate earnings, sectoral reforms, or improved liquidity in certain areas.
However, the sharp depreciation of the Naira is a legitimate concern—it could erode real returns for foreign investors and raise inflationary pressures domestically, which might eventually affect corporate profitability and consumer demand. The sustainability of the rally will likely depend on macroeconomic stability, policy clarity (especially around FX and interest rates), and global economic trends.
As for investing now, it might be a good opportunity for those with a medium- to long-term horizon, especially if one focuses on fundamentally strong companies. Still, caution is advisable—diversification and staying updated on economic indicators will be key.
Also talk with an Economist. I’m only a journalist 😃.
Thank You for the feedback