NGX Market Gains N1.22tn as September Trading Opens on Bullish Note

By Benson Daniel

Trading on the Nigerian Exchange Limited opened September on a strong footing on Tuesday, with investors pushing market capitalisation up by N1.22tn as demand for key equities lifted the benchmark index.

The NGX All Share Index gained 1,883.24 points, representing a 0.77 per cent increase, to close at 246,082.63 points from 244,199.39 points recorded in the previous session.

As a result, the total market capitalisation of listed equities rose from N157.74tn to N158.96tn, translating to an increase of approximately N1.22tn in a single trading session.

The latest advance extended the market’s strong performance this year, with the year to date return climbing to 58.14 per cent.

Investor interest was spread across several sectors, although energy, insurance and banking stocks provided much of the momentum behind the day’s gains.

The NGX Oil and Gas Index recorded the strongest sectoral performance, rising 3.87 per cent, while the Insurance Index advanced 3.34 per cent. The Banking and Consumer Goods indices both gained 0.87 per cent, while the Industrial Goods Index increased by 0.71 per cent.

Among individual stocks, FTN Cocoa Processors and McNichols emerged as the biggest gainers, appreciating by 10 per cent each. SUNU Assurances Nigeria followed with a 9.94 per cent increase, while Sovereign Trust Insurance and Caverton Offshore Support Group gained 9.57 per cent and 9.52 per cent respectively.

The positive performance was also reflected in market breadth, with gainers comfortably outnumbering decliners during the session.

Trading activity strengthened as well. Total volume rose 7.44 per cent to 651.32 million shares, while the value of transactions increased 5.35 per cent to N40.77bn. However, the number of executed deals declined by 18.16 per cent to 43,760.

Access Holdings recorded the highest trading volume, with 129.89 million shares valued at N4.16bn changing hands. MTN Nigeria led by transaction value, recording deals worth N4.69bn.

On the opposite side of the market, Tripple Gee & Company recorded the largest decline, falling 9.72 per cent to close at N2.60 per share. ABC Transport and Nigerian Aviation Handling Company also recorded notable losses of 9.52 per cent and 9.22 per cent respectively.

The September rally builds on the positive momentum recorded at the end of August, when the NGX closed the month with a year to date gain of about 56.9 per cent.

The renewed buying interest suggests that investors are continuing to reposition their portfolios following the market’s strong performance during the first eight months of the year.

Analysts have attributed the recent activity partly to portfolio realignment by institutional and retail investors seeking opportunities in sectors and companies with stronger earnings prospects.

The performance also comes against a backdrop of increased liquidity in the equity market, with investors continuing to weigh attractive valuations and corporate fundamentals against broader economic and monetary policy developments.

For investors, the challenge will be sustaining the current momentum without triggering excessive profit taking after the significant gains recorded so far this year.

The opening session nevertheless provides a positive start to September, with rising market capitalisation, stronger trading value and broad based sectoral gains indicating continued appetite for Nigerian equities.

If the buying interest persists, the NGX could maintain its upward trajectory in the near term, although market watchers are likely to remain alert to profit taking and shifts in investor sentiment.