Investors gain N1.9tn as Airtel Africa leads Nigerian stock rally

Nigerian equities opened the week with a N1.909 trillion gain in market value on Monday, August 3, driven by Airtel Africa and other heavyweight stocks. The All-Share Index rose 1.20% to close at 248,529.75 points, up from 245,573.60 points at the end of the previous session.

Market capitalisation climbed to N160.422 trillion from N158.513 trillion, according to data from the Nigerian Exchange (NGX). Trading activity remained strong, with 1.10 billion shares valued at N27.0 billion exchanged in 59,185 deals.

Sectoral performance mixed

The Consumer Goods Index was the only sectoral index to record a significant gain, rising 0.76%. Other sectors closed lower. The Insurance Index declined 1.64%, the Banking Index fell 0.24%, the Energy Index dropped 0.09%, and the Industrial Goods Index retreated 0.05%.

Despite the benchmark's strong rise, market breadth was negative. 37 stocks declined against 23 gainers, showing that the rally was not broad-based.

Top gainers and losers

Airtel Africa led major gainers, surging 8.59% to close at N6,300.00. Fortis Global Insurance gained 10.00% to N2.86. Chams advanced 9.80% to N4.48. NAHCO rose 9.29% to N153.00. Sovereign Trust Insurance appreciated 6.59% to N1.78.

On the downside, AVA Capital declined 10.00% to N9.90. Ecobank fell 9.92% to N64.95. Caverton dropped 9.09% to N5.00. Ikeja Hotel declined 8.41% to N43.00. FTN Cocoa shed 8.37% to close at N8.10.

Heavy trading in select stocks

Consolidated Hallmark led the activity chart with 354.1 million shares worth N1.5 billion. Fortis Global Insurance traded 307.3 million shares valued at N818.3 million. Access Holdings exchanged 48.1 million shares worth N1.4 billion. Chams recorded 37.4 million shares valued at N163.3 million. First HoldCo traded 35.8 million shares worth N5.1 billion.

Separately, Femi Otedola, Chairman of First HoldCo Plc, strengthened his position in the financial services company by purchasing an additional 680.8 million shares through a private placement. The transaction increased Otedola's stake to 20.42%, taking the estimated value of his holdings to about N1.05 trillion. Sources said the shares were issued at N44 each, a discount to First HoldCo's closing share price of N61 on July 18.

For Nigerian investors, the day's gains show that large-cap stocks can still lift the broader index. However, the negative market breadth signals that many smaller stocks remain under pressure, and the rally may depend on continued buying in a few heavyweight names.