The Nigerian equities market continued its impressive winning streak on Wednesday, breaking decisively above the 140,000-point psychological barrier and sustaining the bullish sentiment that has characterised trading in recent sessions.
The NGX All-Share Index (ASI) advanced by 0.41%, closing at 140,365.36 basis points from the previous day’s 139,796.11bps, bringing the year-to-date (YTD) return to 36.37%. This rally translated to a N360.18 billion gain in market capitalisation, which climbed to N88.81 trillion, reflecting renewed investor confidence in the domestic bourse.
The positive outing was driven by a strong demand across sectors, particularly in large- and mid-cap stocks. BERGER, for example, topped the gainers’ chart with a 9.86% jump, crossing its 52-week high to close at N39.00 per share, a move that triggered increased interest in the industrial goods sector. Other top performers included WAPCO (+6.71%), UNILEVER (+6.33%), CADBURY (+4.67%), ARADEL (+3.68%), ACCESSCORP (+2.32%), NB (+2.12%), DANGCEM (+1.50%), OANDO (+0.63%), FIDELITYBK (+0.24%), TRANSCORP (+0.22%) and UBA (+0.11%). Market breadth closed positive, as 37 stocks appreciated against 22 losers, led by FTNCOCOA and CHELLARAM, while MAYBAKER topped the losers’ chart following bouts of profit-taking.
Market activity showed significant improvement as turnover and market participation strengthened. Total traded volume rose 16.47% to 767.73 million shares, valued at N40.64 billion, exchanged in 24,837 deals. FCMB emerged as the most traded stock by volume with 287.78 million shares, representing 37.48% of total market activity, while NB and ARADEL followed with 6.57% and 5.66% respectively. In terms of value, ARADEL dominated with N23.01 billion, accounting for 56.61% of total turnover, an indication of persistent accumulation by institutional investors and portfolio managers.
From a technical perspective, Wednesday’s breakout above the 140,000-point level confirms the prevailing bullish momentum and signals the possibility of further upside in the near term.
The NGX ASI continues to trade well above its 20- and 50-Day Moving Averages, reflecting sustained buying interest. The relative strength index (RSI) is approaching overbought territory but still provides room for additional gains, suggesting that the market could extend its rally before experiencing any major pullback. The money flow index remains elevated, indicating consistent capital inflows into equities.
Resistance is projected at the 141,000–141,500 range, where profit-taking may slow the rally, while strong support is expected around 139,500 and 138,900 points, providing a cushion against sharp declines. A successful consolidation above the current level could set the stage for a fresh leg of upside momentum as investors position ahead of interim dividend declarations and Q3 corporate earnings releases.
Across key sectors, the industrial goods space led the advance, buoyed by gains in DANGCEM, WAPCO and BERGER, which attracted significant buy interest. The consumer goods sector also closed higher, supported by gains in NB, CADBURY and UNILEVER, while the banking index remained resilient with mild advances in ACCESSCORP, FIDELITYBK and UBA sustaining the positive sentiment. Oil and gas stocks traded mixed, although OANDO closed marginally higher as investors reacted to rising global crude prices.
On the global commodities front, crude oil extended its rally on renewed geopolitical tensions, following Israel’s strikes on Hamas leadership in Qatar, Poland’s interception of drones, and the United States’ move to tighten sanctions on Russian crude buyers. Brent crude rose 1% to $67.05 per barrel, while U.S. West Texas Intermediate gained 1.1% to settle at $63.31 per barrel. The rally in oil prices continues to provide some tailwind for Nigeria’s fiscal outlook and may influence sentiment for energy-related equities.
Overall, the market’s performance reflects a sustained risk-on mood, driven by strong domestic liquidity, corporate earnings expectations and renewed foreign interest. While short-term volatility and profit-taking are likely at this level, the underlying trend remains bullish, positioning the market for further upside if macroeconomic stability and earnings surprises align in the weeks ahead.
