Nigeria stocks hold firm with over 40% returns despite mild sell-offs
The Nigerian equities market closed lower on Monday as investors took profits in select stocks, yet overall market performance continues to reflect robust growth and investor confidence.
Despite the session’s setback, the Year-to-Date (YtD) ASI remains strong at 44.50 percent, while the Month-to-Date (MtD) return stands at 3.47 percent, signalling continued market resilience.
“Short-term market adjustments are normal in a dynamic market like Nigeria’s. The underlying fundamentals remain strong, and the year-to-date performance highlights the resilience and depth of our capital markets,” said David Adonri, Vice-Chairman, Board of HighCap Securities.
The All-Share Index (ASI) fell 0.50 percent on Monday, following sell-offs in stocks such as NAHCO, MBENEFIT, and AIICO.
Market turnover on monday reached N11.35 billion, traded across 32,538 deals, marking a 26.10 percent decline in value and a 30.88 percent decline in volume compared to Friday. Top performers by turnover included DANGCEM (N2.15billion), ZENITHBANK (N1.31billion), WAPCO (N1.05billion), Aradel (N643million), and GTCO (N520million).
The equities market maintained a market capitalisation of N94.53 trillion ($65.80billion), while the fixed income market remained steady at N52.60 trillion ($36.61billion), reflecting continued investor confidence in Nigeria’s capital market.
Investor sentiment, as measured by market breadth, recorded 0.31x, indicating selective gains in 13 equities against losses in 42 others. Analysts note that such fluctuations present strategic opportunities for long-term investors to reposition their portfolios.
Despite mild profit-taking, the Nigerian equities market continues to demonstrate exceptional strength, buoyed by robust liquidity and sustained investor confidence.
With the All-Share Index still up 44.50 percent year-to-date and market capitalisation above N94 trillion, analysts remain optimistic that Nigeria’s capital market will close the year on a strong note, driven by improving macroeconomic conditions and active domestic participation.
Market watchers remain confident that liquidity in high-performing stocks and the broader market’s stability will continue to attract both domestic and foreign investors, reinforcing the positive sentiment surrounding Nigeria’s capital market.
