Equities Market To Sustain Rally Amid Frontier Market Status, Corporate Profits

The Nigerian equities market heads into this week trading with optimism, with analysts projecting extended gains on the back of solid earnings releases and the strategic lift from Nigeria’s FTSE Frontier Market reclassification.

The combination of improved market infrastructure, positive earnings surprises, and anticipated foreign inflows is seen sustaining risk appetite, positioning the NGX to close the week higher barring any sudden macro shocks.

Looking ahead, Afrinvest Limited said, “We expect the market to maintain a bullish bias, driven by investor positioning for dividend payouts and Q1:2026 earnings releases. We also expect market sentiment to be supported by continued positive reactions to the reclassification of Nigeria’s market from unclassified status to Frontier Market.”

Also, Cowry Assets Management Limited stated that “the Nigerian equities market is expected to maintain its positive momentum this week, supported by sustained buying interest in fundamentally strong and highly liquid stocks. Improved trading activity and rising investor participation may continue to underpin market performance.

“However, the negative market breadth suggests underlying fragility, as profit-taking and sell-offs in a broader range of stocks could temper gains. Investors are therefore likely to remain selective, focusing on value opportunities and earnings-driven plays, while monitoring macroeconomic developments and liquidity conditions for clearer market direction.”

The equities market ended last week on a positive note once again, as gains in a few key stocks lifted overall performance. The benchmark NGX All-Share Index (ASI) edged up 1.03 per cent week-on-week to close at 203,770.42 points.

Similarly, the market capitalisation advanced by N1.36 trillion to close the week at N131.166 trillion. Consequently, the year-to-date return improved to 30.95 per cent, reflecting sustained positive momentum.

However, market breadth was negative, with 25 stocks gaining and 54 decliners, indicating that, despite overall market growth, more stocks actually recorded losses during the week. Trans-Nationwide Express led the gainers’ table, rising 32.75 per cent to close at N3.77 per share. Nigerian Exchange Group followed with a gain of 13.94 per cent to close at N188.00, while Guaranty Trust Holding Company (GTCO) went up by 10.66 per cent to close at N135.00 per share.

On the other hand, DAAR Communications led the decliners table by 21.47 per cent, closing at N1.50 per share. RT Briscoe followed with a loss of 20.00 per cent to close at N8.40, while DEAP Capital Management & Trust declined by 16.81 per cent to close at N5.00 per share.

Overall, a total of 3.361 billion shares worth N151.948 billion were traded last week by investors on the floor of the Exchange, in contrast to a total of 2.856 billion shares valued at N113.597 billion that exchanged hands the previous week in 215,287 deals.

The Financial Services Industry led the activity chart, with 2.303 billion shares valued at N90.467 billion traded in 98,175 deals, contributing 68.54 per cent to the total equity turnover volume and 59.54 per cent to the total equity turnover value.

The Services Industry followed with 264.146 million shares worth N1.977 billion in 12,638 deals, while the ICT Industry traded a turnover of 214.578 million shares worth N9.791 billion in 28,183 deals.

Trading in the top equities, Access Holdings, Wema Bank and GTCO accounted for 1.124 billion shares worth N49.451 billion in 27,886 deals, contributing 33.45 per cent and 32.54 per cent to the total equity turnover volume and value, respectively.