Equities investors gain N26.2trn amid oil rally, dividend boost
Equities investors gain N26.2trn amid oil rally, dividend boost
The equities market investors gain N26.2trn in April, driven by improved crude oil outlook and strong corporate earnings that boosted investor sentiment.
Market capitalisation rose from N129.809 trillion at the beginning of the month to N155.994 trillion, representing a 20.17 per cent increase, while the All-Share Index advanced by 40,990.03 points, or 20.36 per cent, to close at 242,277.81.
Voice Media Trust (VMTNEWS) reports that trading remained largely positive during the period, with 18 out of 20 sessions closing higher, reflecting sustained investor confidence.
Vice President, Highcap Securities Ltd., Mr David Adonri, described April as a remarkable month for the market, noting that equities extended their rally with strong momentum.
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“April was another fantastic month for the capital market as equities continued its unprecedented rally with non-diminished intensity.
“The main charge was spearheaded by the banking sector which had been quiet for some time. April was also the tail end of the earnings season, which usually orchestrates activities in the market,” he said.
Adonri expressed optimism that the rally could extend into May, citing improved crude oil prices and relative stability in the foreign exchange market.
According to him, macroeconomic liquidity remained strong, supported by growing confidence from both domestic and foreign investors, although he cautioned that insecurity and pre-election uncertainties could pose risks.
NAN reports that the market also expanded its trading hours during the month from 9.00 a.m. to 4.00 p.m.
A stockbroker, Mr Tajudeen Olayinka, said the extension was a positive development despite initial adjustment challenges.
He noted that the longer trading window would enhance participation, particularly from international investors in markets such as the United States.
Also, the National Coordinator, Independent Shareholders Association of Nigeria, Mr Moses Igbrude, attributed the bullish trend to strong corporate earnings and increased liquidity from bank recapitalisation.
He said: “The positive sentiment was driven by the release of corporate earnings, most of which had been impressive, with only a few underperforming.”
Igbrude added that funds from recapitalisation were expected to flow into equities, further supporting market growth.
Meanwhile, investors traded 15.596 billion shares valued at N848.972 billion in 1,113,650 deals during the month.
The rally was largely driven by gains in oil and gas stocks, supported by rising global crude oil prices, as well as renewed interest in banking stocks following dividend declarations.
Other sectors, including industrial goods, also contributed to the upward momentum.
Among the top gainers, Seplat Energy rose from N9,099.90 to N11,495, while Aradel advanced from N1,260 to N2,024.
Dangote Cement gained N160 to close at N970, MTN Nigeria increased by N155 to N915, and Lafarge Africa surged by N130 to N350.
Zenith Bank and GTCO also recorded gains, closing at N130.50 and N135, respectively.
On the downside, Okomu declined by N15 to N1,750, Conoil fell by N10.40 to N194, while Oando and Eterna dropped by N3.60 and N2.10 respectively.
