The Nigerian stock market continued its upward trend, with banking stocks taking the lead, contributing over N2.62 billion during Tuesday’s trading session. Analysts observed a renewed investor interest in banking equities, driven by expectations of higher dividend payouts.
Financial analyst Ambrose Omorodion suggested that the recent surge in banking sector stocks is more likely due to these anticipated dividends rather than the ongoing recapitalisation process. He noted that the improved performance of banking stocks reflects investor optimism about increased dividends this year.
Echoing this sentiment, Boniface Okezie, National Coordinator of the Progressive Shareholders Association of Nigeria, pointed out that investors are focusing on fourth-quarter results and the potential for higher dividend payments. He remarked that this anticipation is fuelling current trading activity and boosting stock values, with investors strategically positioning themselves in the market.
Access Holdings Plc led the trading session in value terms, with N1.06 billion worth of shares exchanged, followed closely by GTCO with a turnover of N599.34 million, and FirstBank Holdings with trades valued at N519.53 million.
Investor confidence continued to rise as the market gained N272 billion. The market capitalisation and All-Share Index increased by 0.49 per cent, closing at N55.44 trillion and 96,510.13, respectively, pushing the year-to-date gain to 29.57 per cent.
During Tuesday’s session, 120 equities were traded, resulting in 49 gainers and 14 losers. Top gainers included TotalEnergies Marketing Nigeria, Julius Berger Nigeria, John Holt Plc, and Neimeth Pharmaceuticals, each closing with a 10 per cent increase. On the flip side, University Press led the losers’ chart, dipping by 9.58 per cent, followed by Cutix Plc and Vitafoam Nigeria, which declined by 6.25 per cent and 5.17 per cent, respectively.
In terms of trading volume, Veritas Kapital Assurance Plc topped the chart with 83.1 million shares traded, followed by Access Holdings Plc with 56 million shares. Universal Insurance Company Plc and FBN Holdings also saw significant trading volumes of 29.1 million and 23.6 million shares, respectively.
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Earlier in the week, the Nigerian Exchange started on a positive note, gaining N36 billion due to appreciations by Eterna, Okomu Oil Palm, Oando, and others. The All-Share Index and market capitalisation rose by 0.07 per cent, closing at 96,037.28 and N55.2 trillion, respectively, with the year-to-date return improving to 28.35 per cent.
