KEY POINTS
- Nigerian stock investors gained 26.5 trillion naira in April as market capitalization rose to a record 155.7 trillion naira.
- The All-Share Index climbed 20.13 percent for the month, driven by strong buying momentum across key sectors.
- Brent crude rose to $114.16 per barrel as Middle East tensions and OPEC+ uncertainty supported energy-linked equities.
Nigerian stock investors are 26.5 trillion naira richer after a blockbuster April on the Nigerian Exchange. Market capitalization climbed to a record 155.7 trillion naira at the end of trading, up from 129.209 trillion in March, as strong buying momentum across key sectors lifted every major performance indicator.
The All-Share Index surged 20.13 percent in April to 241,815.32 points from 201,287.78 in March. Investors banked 26.487 trillion naira in cumulative gains for the month, the strongest stretch the local bourse has seen this year.
Banks at the wheel
Specifically, the Financial Services Industry led activity by volume, accounting for 3.755 billion shares worth 124.398 billion naira in 146,938 deals during the week. The sector contributed 77.56 percent of total equity turnover volume and 43.23 percent of value.
Notably, Tony Elumelu’s UBA, alongside Access Holdings and Wema Bank, dominated the volume table. The three names accounted for 2.026 billion shares worth 60.036 billion naira in 39,925 deals.
Furthermore, the Consumer Goods Industry followed with 177.009 million shares worth 30.853 billion naira in 36,609 deals, while the Services Industry came in third with 176.809 million shares valued at 4.387 billion naira.
Total weekly turnover hit 4.842 billion shares worth 287.756 billion naira in 332,453 deals, a sharp jump from 3.805 billion shares valued at 213.955 billion naira in the prior week’s 297,202 deals.
Additionally, the rally drew renewed institutional interest in high-cap and fundamentally sound stocks, reinforcing the market’s resilient uptrend. The buying signals confidence in companies’ earnings strength and pricing power in an inflationary environment. Foreign portfolio inflows have begun to firm up alongside domestic investor activity.
A global tailwind
Meanwhile, on the international scene, Brent crude extended its rally to $114.16 per barrel. Analysts at InvestData Consulting Limited tied the surge to geopolitical tensions in the Middle East, particularly the continued disruption of shipping through the Strait of Hormuz.
Specifically, the deadlock in negotiations between the United States and Iran has heightened supply concerns. The UAE’s exit from OPEC+ has added another layer of uncertainty for global oil markets.
“Despite this, supply constraints remain the dominant theme, supporting elevated oil prices. For Nigeria, sustained high oil prices are a positive macro driver, boosting revenue outlook and supporting investor sentiment, particularly in energy-linked equities,” InvestData said.
Crucially, the April performance sets up a high bar heading into May. With banks now flush with fresh capital, energy-linked equities riding a crude oil tailwind and consumer goods stocks showing pricing power, the market enters next month with multiple catalysts.
However, the rally also raises the stakes. Notably, analysts will watch closely whether the bull run extends or gives way to profit-taking as Q1 earnings season winds down. The 155.7 trillion naira market cap milestone signals confidence, but Nigeria’s investors will keep one eye on Tehran, Washington and the OPEC+ table for the next move that could swing direction either way.
