Nigerian equities’ return hits N6.4tr on record transactions

Investors in Nigerian equities notched up about N1.13 trillion at the weekend to push their net capital gains so far this year to N6.42 trillion.

The stock market defied momentary profit-taking in the early transactions to sustain its rally for the sixth consecutive week, a rally triggered by the May 29, 2023 inauguration of the President Bola Tinubu’s administration.

Benchmark indices at the equities market indicated average return of 3.40 per cent last week, equivalent to net capital gain of N1.13 trillion within the five-day trading session.

The continuing rally nudged the average year-to-date return for Nigerian equities to 23 per cent, equivalent to net capital gain of N6.42 trillion, substantially above the full-year return for last year. Nigerian equities had closed last year with full-year average return of 19.98 per cent, equivalent to net capital gain of N4.455 trillion.

The All Share Index (ASI)- the common value-based index that tracks all share prices at the Nigerian Exchange (NGX), closed weekend at 63,040.41 points as against its week’s opening index of 60,968.27 points. It had opened 2023 at 51,251.06 points. The ASI had opened 2022 at 42,716.44 points.

Aggregate market value of all quoted equities also rose from week’s opening value of N33.198 trillion to close weekend at N34.326 trillion. It had opened 2023 at N27.915 trillion. Aggregate market value of quoted equities opened 2022 at N22.297 trillion.

Global stock market indices indicated that Nigerian equities outperformed most global benchmarks, across the advanced, emerging and frontier markets.

The continuing rally at the market came on the back of renewed optimism over the economic direction of the Tinubu administration, widely regarded as investor-friendly.

Share price appreciations have been driven mainly by increased demand for Nigerian quoted shares. Total turnover at the NGX tripled to 9.83 billion shares worth N145.41 billion in 54,478 deals last week as against a total of 3.37 billion shares valued at N41.99 billion traded in 39,764 deals two weeks ago.

The financial services sector led the activity chart with 8.349 billion shares valued at N127.944 billion traded in 27,291 deals; thus contributing 84.92 per cent and 87.99 per cent to the total equity turnover volume and value. The conglomerates sector followed with 420.770 million shares worth N1.683 billion in 2,840 deals while the information and communication technology (ICT) sector placed third with a turnover of 220.121 million shares worth N2.198 billion in 3,237 deals.

Banks were the most active stocks with the trio of FBNH Holding Plc, FCMB Group Plc and United Bank for Africa, accounting for 6.071 billion shares worth N102.488 billion in 7,505 deals, contributing 61.75 per cent and 70.48 per cent to the total equity turnover volume and value respectively.

There were more than three gainers to every loser last week in a market-wide rally that saw most stocks reaching their highest share prices in recent years. There were 78 gainers and 25 losers last week compared with 77 gainers and 59 losers recorded in the previous week.

Japaul Gold & Ventures led the gainers, in percentage terms, with a gain of 58.57 per cent to close at N1.11 per share. Consolidated Hallmark Insurance followed with a gain of 57.32 per cent to close at N1.29. Chams Holding Company rose by 56.76 per cent to N1.16.

Omatek Ventures rallied by 52.78 per cent to close at 55 kobo per share. Veritas Kapital Assurance appreciated by 47.83 per cent to close at 34 kobo while E-Tranzact International added 45.89 per cent to close at N9.41 per share.

On the negative side, Coronation Insurance led the losers with a drop of 26.51 per cent to close at 61 kobo. Tripple Gee and Company followed with a loss of 26.4 per cent to close at N2.76. Ikeja Hotel dipped by 21.05 per cent to N3.15. Lasaco Assurance lost 16.92 per cent to close at N2.16 while Champion Breweries declined by 14.5 per cent to close at N4.60 per share.


Most analysts remained optimistic that the market would remain on the upswing, citing the impending release of half-year results of quoted companies.

Analysts at Cordros Securities at the weekend said the market would remain bullish, although there could be intermittent profit-taking session due to the accumulated gains in recent period.

There has been analysts’ consensus that the rally at the stock market was directly related to the policy stance of the Tinubu’s administration.

The Nigerian Exchange (NGX) stated that the market performance came on the back of “audacious macroeconomic reforms under the new administration”, noting that market operators were of the view that “the policies of the new administration under President Bola Tinubu” had “led to the rise in the fortunes of investors”.

In barely a month, the Tinubu administration has given effect to the stoppage of the 46-year old fuel subsidy, abolished the multiple forex rates and instituted probes into major issues of public finance.

In his May 29, 2023 inaugural speech, which that had been described generally as market friendly, Tinubu had addressed general issues of security, economy, infrastructure and monetary outlook. The president also directly addressed investors’ concerns on multiple taxations, returns repatriation and foreign exchange (forex) among others.

“I have a message for our investors, local and foreign, our government shall review all their complaints about multiple taxation and various anti-investment inhibitions. We shall ensure that investors and foreign businesses repatriate their hard earned dividends and profits home,” Tinubu said, directly addressing the global investing public.

Afrinvest Securities said “economy reform optimism” bolstered the market performance, noting that the “the rally in the market followed the promise of critical reforms by the President Bola Tinubu administration”.

Analysts at Arthur Steven Asset Management said the equities market’s bullish momentum was “because of the new administration which tends to affect the market positively”.

“The market reacted to the high expectation from the new administration as the government promised the investors easy repatriation of their investment and profit,” Arthur Steven Asset Management stated.