Stocks gain N228bn as NGX closes above 250,000 points

The Nigerian equities market gained N228bn on Monday as renewed buying interest lifted the market capitalisation to N162.385tn and pushed the benchmark index above the 250,000-point mark.

The NGX All-Share Index rose by 0.14 per cent to close at 250,156.80 points, while the year-to-date return increased to 60.76 per cent.

The positive close was driven by price appreciation in 38 stocks, although 25 equities recorded losses.

Trading activity was also mixed, with investors exchanging 574.19 million shares valued at N38.06bn in 68,655 deals.

The volume represented a 9.2 per cent increase from the previous session.

Sunu Assurance, NASCON Allied Industries, Omatek Ventures and Thomas Wyatt Nigeria led the gainers, each appreciating by 10 per cent.

Sunu Assurance closed at N3.08 per share, while NASCON rose to N176.00. Omatek Ventures ended at N1.32, with Thomas Wyatt Nigeria closing at N2.53.

Critical Minerals Financing Corporation gained 9.80 per cent to close at N2.24, while Fortis Global Insurance appreciated by 9.70 per cent to N1.81 per share.

However, the session was not without significant losses.

Okomu Oil led the losers’ chart, falling by 10 per cent to close at N1,276.20 per share.

Custodian Investment declined by 9.13 per cent to N68.15, while Sovereign Trust Insurance lost 8.64 per cent to close at N2.01.

Haldane McCall fell by 8.33 per cent to N3.30, while Ellah Lakes shed 5.39 per cent to close at N7.90 per share.

Despite the mixed performance across individual stocks, the broader market maintained its upward momentum.

Analysts, however, expect investors to trade cautiously this week as attention shifts to major monetary and market developments.

Futureview Group said investors were likely to favour companies with strong fundamentals, attractive valuations and positive earnings prospects.

“We expect cautious trading, with investors favouring fundamentally strong, attractively valued stocks backed by positive earnings prospects,” the group stated.

United Capital Plc also projected an active but mixed market, with investors expected to monitor the outcome of the Central Bank of Nigeria’s Monetary Policy Committee meeting scheduled for September 21 and 22.

“The Nigerian equity market should remain active and mixed this week,” United Capital said.

The investment firm said a tighter MPC stance could favour defensive and high-dividend stocks, while banking equities might experience mixed trading.

Another major factor expected to shape market activity is FTSE Russell’s Frontier Market reclassification, which takes effect at market open on September 21.

United Capital also pointed to the N2.15tn Dangote Refinery initial public offering as a major liquidity driver ahead of its October 13 closing date.

“The size of the offer could attract new domestic, regional and foreign investors to the market,” the firm said.

Elevated crude oil prices could also support oil and gas counters, according to the investment firm.

It added that overall market performance would depend on whether fresh inflows and positive expectations surrounding the MPC could offset liquidity pressures associated with the Dangote Refinery IPO.

For investors, the week’s trading is therefore expected to be shaped by the competing forces of fresh capital inflows, monetary policy signals, market reclassification and the massive refinery share offer.