FTN Cocoa, McNichols lead ₦1.22tn NGX rally as investors gain

By Benson Daniel

Investors in Nigerian equities ended Tuesday with a sizeable boost as renewed buying interest pushed the market capitalisation of listed companies higher by ₦1.22tn.

The rally was broad enough to lift the Nigerian Exchange All Share Index by 0.77 per cent to 246,082.63 points, extending the market’s strong run and taking its year to date return to 58.14 per cent.

Two smaller counters, FTN Cocoa Processors Plc and McNichols Consolidated Plc, were among the stocks that caught investors’ attention.

Both companies climbed by the maximum 10 per cent allowed on the exchange, with FTN Cocoa rising from ₦7.50 to ₦8.25 per share, while McNichols moved from ₦4.50 to ₦4.95.

The gains came alongside stronger interest in a number of other stocks, suggesting that investors were willing to take positions beyond the biggest names on the exchange.

Sunu Assurances Nigeria Plc added 9.94 per cent to close at ₦3.43, while Sovereign Trust Insurance Plc gained 9.57 per cent to ₦2.06. Caverton Offshore Support Group Plc also advanced 9.52 per cent to finish at ₦4.60.

Some of the larger stocks recorded notable absolute price gains as well. Aradel Holdings Plc added ₦124.90 to close at ₦1,539.90, while Nestlé Nigeria Plc rose by ₦165 to ₦2,995. May & Baker Nigeria Plc recorded a ₦3.50 increase to settle at ₦40.50.

The day’s performance was not entirely one sided.

Nineteen stocks closed lower, with Tripple Gee and Company Plc suffering the sharpest decline after losing 9.72 per cent to close at ₦2.60.

ABC Transport Plc followed with a 9.52 per cent fall to ₦4.75, while Nigerian Aviation Handling Company Plc dropped 9.22 per cent to ₦136.35. R.T. Briscoe Nigeria Plc also declined by 9.21 per cent to ₦10.35.

Still, the balance of trading favoured the bulls.

A total of 651.24 million shares changed hands in 43,674 deals on the main equities market, reflecting continued activity despite the uneven performance across individual stocks.

The latest advance adds to a remarkable run for Nigerian equities this year. Investors have continued to chase selected stocks as corporate earnings, expectations around economic reforms and the search for returns in an inflationary environment shape market sentiment.

For FTN Cocoa and McNichols, however, the immediate story is the renewed demand for their shares.

Both counters have experienced sharp price movements at different points this year, making them part of the more volatile segment of the market where investor interest can quickly translate into sizeable daily swings.

That appetite for smaller stocks is important because the performance of the broader market is no longer being determined solely by the heavyweight companies.

The latest session showed that investors are prepared to move into less prominent counters when they see room for price appreciation.

Whether that momentum can hold is another question. Sustained gains will ultimately depend on corporate fundamentals, liquidity and the willingness of investors to keep buying after the initial rally.

For now, though, the direction remains firmly positive.

The NGX has pushed deeper into record territory, and with FTN Cocoa, McNichols and several other stocks attracting strong demand, investors are showing little sign of abandoning the rally just yet.