Equity Market Surges by N1.18tn on Oil, Insurance Rally

The Nigerian Exchange (NGX) recorded a significant boost on Wednesday, with the equity market gaining N1.18 trillion in market capitalization, driven by strong performances in the oil and gas and insurance sectors.

At the close of trading, the All-Share Index rose by 2,246.00 points, or 1.95%, to settle at 117,156.16 basis points, while market capitalization climbed from N72.5tn to N73.7tn.

The rally was led by notable gains in heavyweight stocks such as NEM Insurance, Seplat Energy, Thomas Wyatt Nigeria, and Linkage Assurance. NEM Insurance topped the gainers’ chart with a 10% increase to N16.50 per share, followed by Seplat Energy with a 9.78% rise to N5,450.00 per share. Thomas Wyatt and Linkage Assurance also posted gains of 9.73% and 9.56%, respectively.

Sectoral performance showed the Oil & Gas Index leading with a 7.49% gain, followed by the Premium Index at 3.52%, the Banking Index at 3.25%, and the Insurance Index at 2.02%.

Out of 130 listed equities traded, 37 advanced while 31 declined, reflecting a broadly positive market sentiment. However, Eterna Plc led the losers with a 10% drop to N38.70 per share, trailed by Secure Electronic Technology, Legend Internet, and FTN Cocoa Processors.

In terms of volume, Zenith Bank led with 150 million shares traded, followed by Access Holdings (48.6 million), UBA (43 million), and Nigerian Breweries (37.7 million).

Despite a 19% decline in total volume traded, market turnover rose by 1% to N26.01bn, although the number of deals fell by 15% to 19,727.

The broader market posted a weekly gain of 2.75%, a four-week gain of 6.79%, and a year-to-date return of 13.83%, underscoring investor confidence amid macroeconomic challenges.

Analysts at Afrinvest projected a continued bullish trend, citing improved sentiment and bargain hunting in key sectors.