NGX ASI surges 6.4% after three-week slide

INVESTORS returned aggressively to the Nigerian equities market last week, positioning ahead of the half-year earnings season and taking advantage of attractive valuations in fundamentally strong stocks after three consecutive weeks of declines, sparking a broad-based rally that added N9.34 trillion to investors’ wealth.

The renewed appetite for equities lifted the Nigerian Exchange (NGX) All-Share Index (ASI) by 6.35 percent week-on-week to close at 243,798.76 points, while market capitalisation rose to N156.45 trillion from N147.11 trillion the previous week. The rebound pushed the market’s month-to-date return to 6.4 per cent and year-to-date gain to 56.8 percent, reinforcing Nigeria’s position among the world’s best-performing equity markets in 2026.

Market operators attributed the recovery to bargain hunting in blue-chip stocks, whose valuations had become attractive, following the recent correction. Heavyweight counters such as Airtel Africa, Aradel Holdings, Dangote Cement, MTN Nigeria and HBM Nigeria drove buying interest, gaining 13.9 percent, 18.7 percent, 17.9 per ent, 8.1 percent and 15.1 percent respectively, as investors positioned for another strong corporate earnings season.

The rally extended across all major sectors, underscoring the breadth of the recovery. The Industrial Goods Index led with a 10.5 percent gain, followed by Oil and Gas at 8.8 percent, Banking at 4.7 percent, Insurance at 3.9 percent and Consumer Goods at 3.0 per cent.

Although share prices rallied strongly, trading activity eased. NGX data showed investors exchanged 3.65 billion shares worth N220.57 billion in 251,861 deals during the week. Trading volume declined by 5.2 percent compared with the previous week, but transaction value remained robust as investors concentrated on higher-priced, fundamentally attractive stocks. The Financial Services sector continued to dominate market activity, accounting for 79.48 per cent of traded volume and 66.81 per cent of total value traded.

Market breadth strengthened considerably, with 60 stocks recording gains against 28 losers, while 58 closed unchanged, reflecting a marked improvement in investor sentiment across large-, mid- and small-cap stocks.

International Breweries emerged as the week’s best-performing stock with a 40.0 per cent gain, followed by RT Briscoe at 32.02 per cent, Livestock Feeds at 28.47 per cent, First HoldCo at 25.82 per cent, Abbey Mortgage Bank at 23.65 per cent, Honeywell Flour Mills at 21.43 per cent and Aradel Holdings at 19.67 per cent. On the losers’ chart, McNichols, Thomas Wyatt, Geregu Power, CAP Plc, Guinness Nigeria and Ecobank Transnational Incorporated came under selling pressure as investors took profits.

The rally was also supported by abundant liquidity in the financial system. The overnight rate remained stable at 22.2 per cent as inflows from N2.21 trillion in Open Market Operation maturities more than offset Treasury bills auction debits, leaving average system liquidity in a net long position of about N4.10 trillion.

Analysts expect the positive momentum to continue this week as investors position ahead of the release of H1 2026 corporate earnings, particularly in fundamentally strong stocks that still offer attractive entry points. They, however, caution that elevated fixed-income yields will continue to compete for investment flows and could moderate the pace of gains, even as an expected N2.97 trillion in OMO maturities is likely to provide additional liquidity support for the financial markets.

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