aLagos: The equities market experienced a significant surge in April, with gains amounting to N26.185 trillion, fueled by a positive crude oil outlook and robust corporate earnings that enhanced investor confidence. Market capitalization increased from N129.809 trillion at the start of April to N155.994 trillion, marking a 20.17 percent rise, while the All-Share Index climbed by 40,990.03 points, or 20.36 percent, to end at 242,277.81.
According to News Agency of Nigeria, trading during this period remained predominantly positive, with 18 out of 20 sessions concluding on a high note, indicating sustained investor trust. Mr. David Adonri, Vice President of Highcap Securities Ltd., described the month as exceptional for the market, noting that equities maintained a strong rally with considerable momentum. He highlighted that the banking sector, which had been relatively quiet, led the charge, driven by the tail end of the earnings season that typically stimulates market activities.
Adonri expressed hope that the rally might continue into May, citing improved crude oil prices and a relatively stable foreign exchange market. However, he warned that issues such as insecurity and pre-election uncertainties could pose potential risks. The market also expanded its trading hours from 9:00 a.m. to 4:00 p.m. during April, a development that Mr. Tajudeen Olayinka, a stockbroker, saw as positive despite initial adjustment challenges. He believed that the longer trading window would facilitate greater participation, particularly from international investors in markets like the United States.
The National Coordinator of the Independent Shareholders Association of Nigeria, Mr. Moses Igbrude, attributed the bullish trend to strong corporate earnings and increased liquidity from bank recapitalization. He noted that the release of impressive corporate earnings spurred positive sentiment, with only a few companies underperforming. Igbrude also mentioned that funds from recapitalization were expected to flow into equities, further bolstering market growth.
During the month, investors traded 15.596 billion shares valued at N848.972 billion across 1,113,650 deals. 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’s shares rose from N9,099.90 to N11,495, while Aradel advanced from N1,260 to N2,024. Dangote Cement experienced a gain of N160, closing at N970, MTN Nigeria increased by N155 to N915, and Lafarge Africa surged by N130 to N350. Zenith Bank and GTCO also saw gains, closing at N130.50 and N135, respectively. Conversely, Okomu’s shares 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.