The Nigerian Exchange Ltd. (NGX) recorded a N1.91 trillion gain in market capitalisation on Monday, marking a 1.20 per cent increase and the fourth consecutive day of gains. Market value opened at N160.421 trillion and closed at N158.513 trillion. The All-Share Index rose by 2,956.15 points to close at 248,529.75, lifting year-to-date returns to 59.71 per cent. Growth was driven by strong performance in high-capitalisation stocks including Airtel Africa, Fortis Global Insurance, Chams, Nigerian Aviation Handling Company and Sovereign Trust Insurance. Airtel Africa shares rose 8.59 per cent to N6,300, while Fortis Global Insurance gained 10 per cent to N2.86 per share.
Despite the overall gain, market breadth was negative with 37 stocks declining against 23 advancing. AVA Capital fell 10 per cent to N9.90, Ecobank Transnational Corporation dropped 9.92 per cent to N64.95, and Caverton Offshore Support Group lost 9.09 per cent to close at N5 per share. Trading activity slowed, with total volume down 25.11 per cent at 1.14 billion shares valued at N27.02 billion across 59,185 deals. Consolidated Hallmark Plc accounted for 31.14 per cent of traded volume, while First Holdco recorded the highest transaction value at N5.12 billion.
GlobalView Capital Ltd. Managing Director Kebira Aruna attributed the market movement to gains in large-cap stocks worth over N1 trillion, particularly Airtel Africa. He noted that such stocks, often called SWOOTs, have significant influence on the broader index. Aruna said the market now has over 20 major stocks capable of driving movement, up from just two or three in the past. He also said a new pricing methodology set for August 16 may increase volatility by introducing revised board-lot requirements, though it could improve price discovery.
The market's rise was powered by just a few large-cap stocks, meaning most investors may not have shared equally in the N1.91 trillion gain. If index movement depends heavily on a narrow group of equities, the broader recovery may be less inclusive than headline figures suggest.
Editorial note: AI-assisted opinion, not established fact. Full disclaimer →
