Equity market crosses N165trn mark as index scales historic all-time high

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Read History Go to My Account Log Out Enhanced by Google Markets Equity market crosses N165trn mark as index scales historic all-time high The Nigerian equities market has recorded a new milestone, with total market capitalisation crossing the N165 trillion mark to reach

Listen to this article Share The Nigerian equities market has recorded a new milestone, with total market capitalisation crossing the N165 trillion mark to reach N165.114 trillion on Friday, October 30.

The rally was led by Dangote Cement, which gained 27.81 percent during the review week to close at N1,420 per share. Honeywell Flour Mills followed with a 25.98 percent increase to N22.55, while UPDC REIT rose 20.57 percent to N21.10.

In the banking sector, Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA), Access Holdings, Fidelity Bank and Wema Bank also attracted substantial buying interest.

The benchmark NGX All-Share Index (ASI) climbed above 254,000 points to close at 254,299.49 points, extending a multi-week rally that has lifted its year-to-date gain to 63.41 percent.

The rally was supported by increased liquidity, improved investor sentiment and a shift towards equities as declining fixed-income yields encourage investors to seek higher returns.

Omoniyi Animashaun, senior analyst at United Capital, said the decline in fixed-income yields following monetary policy easing had made equities more attractive to investors.

He said increased liquidity and improved investor confidence were also supporting the market, adding that improving foreign exchange stability, easing inflation and lower borrowing costs could further strengthen corporate performance and sustain the rally.

However, Jude Aido of Sky Capital said the shift into equities was largely liquidity-driven and potentially temporary, warning that investors could return to fixed-income assets if yields become more attractive.

Temi Popoola, group managing director and chief executive officer of Nigerian Exchange Group (NGX Group), said the performance reflected growing confidence in Nigeria’s economic potential and the opportunities available to investors.

He said it also highlighted the increasing role of the capital market in mobilising long-term capital to support enterprise growth, investment and sustainable economic development.

Jude Chiemeka, chief executive officer of Nigerian Exchange Limited, said the record index and market capitalisation underscored the growing depth and resilience of Nigeria’s equities market.

He said the exchange’s priorities included attracting quality listings, product innovation, improving liquidity and strengthening market efficiency to sustain investor participation.

Kehinde Jones of Anchoria Capital Group said the outlook remained cautiously positive, supported by corporate earnings and stronger domestic participation.

The planned listing of Dangote Petroleum Refinery and Petrochemicals on the Nigerian Exchange could further expand the market’s valuation, with the company expected to command an indicative market capitalisation of N65.22 trillion at its offer price of N525 per share.

The refinery’s initial public offering comprises 4.1 billion new ordinary shares, targeting N2.15 trillion in fresh capital. The implied valuation would make it one of the largest companies on the exchange, significantly reshaping the market’s composition and increasing the weight of the industrial sector. 

The offer attracted subscriptions of about N6.4 trillion, nearly three times its target of N2.15 trillion, according to Reuters, reflecting strong demand from domestic retail and institutional investors.

At the indicative valuation, the refinery’s addition could lift the NGX’s current N165.114 trillion market capitalisation to approximately N230.3 trillion, assuming other share prices and market valuations remain unchanged.

Iheanyi Nwachukwu, is a creative content writer with over two decades journalism experience writing on banking, finance, capital markets, and…

Ayomide Odunlami is a Tax Reporter at BusinessDay, covering Nigeria’s tax reforms, compliance trends, and government revenue strategies. She reports…