Nigeria equities gain N1.58trn on Dangote listing hopes
The Nigerian stock market added N1.58 trillion in value driven by large-cap buying and Dangote Refinery's oversubscribed capital raise, though sharply lower trading volumes point to a narrowing rally.
Nigerian equities snapped a previous session loss, adding N1.58 trillion in market capitalization to reach N159.88 trillion. The NGX All-Share Index climbed 0.98% to close at 247,832.97 points. This pushes the year-to-date return to 59.26% and inches the benchmark closer to the 60% peak recorded in May.
The primary catalyst for the rebound was Dangote Refinery’s announcement of a successful $2.5 billion private equity placement. The raise was 3.7 times oversubscribed, reinforcing foreign and domestic confidence in Nigeria’s corporate investment landscape just months ahead of the company’s proposed September listing.
However, the index's advance masked a notable contraction in actual market activity. Total trading volume plummeted 37.54% to 782.35 million shares, while the total value traded collapsed by 52.36% to N56.3 billion. Deal count also fell 2.50% to 46,273.
This divergence between rising prices and collapsing liquidity indicates the rally is being driven by highly selective accumulation in large-cap stocks rather than broad-based participation. First HoldCo dominated the session, accounting for 13.60% of total volume and 22.18% of total value, with 106.40 million shares worth N12.49 billion changing hands.
Banking stocks led the sectoral gains, rising 3.92%, followed by industrials at 1.27% and consumer goods at 0.63%. Access Holdings surged 9.98%, while Zenith Bank, GTCO, and United Bank for Africa also posted strong gains. First HoldCo and UPDC REIT both broke above their 52-week highs, and Guinness Nigeria climbed 10% to lead individual gainers.
On the downside, Mecure fell 9.96% to lead the 27 decliners, followed by FTN Cocoa Processors and Omatek. While market breadth remained technically positive at a 1.3x ratio, the concentration of capital in top-tier names presents a risk. With stocks like Guinness Nigeria, First HoldCo, and Access Holdings already posting extended rallies, profit-taking is likely to temper the pace of future gains even as Dangote optimism sustains overall sentiment.
