Lagos, March 24, 2025 (Naija247news) – The Nigerian Exchange Ltd. (NGX) started the week on a positive note, surging with a N369 billion gain as investors reacted positively to the announcement of a N3 per share dividend by United Bank for Africa (UBA). The Nigerian stock market continued its momentum into the week, with the market capitalization and All-Share Index (ASI) rising by 0.56% on Monday.
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• Market Capitalization increased to N66.188 trillion, up from N65.819 trillion, representing a gain of 0.56% from Friday’s opening.
• The All-Share Index (ASI) also saw an uptick, gaining 588.43 points to close at 105,551.39, up from 104,962.96.
• The market experienced 25 gainers compared to 22 losers, reflecting a largely positive sentiment among investors.
Key Stocks Driving the Market
The surge in market capitalization was significantly attributed to UBA’s dividend announcement, which rejuvenated investor confidence in the banking sector. The announcement of three Naira per share dividend by UBA played a pivotal role in boosting market performance, especially in the financial services sector.
Several stocks saw significant price increases as a result of this boost in investor confidence, especially within the banking and insurance sectors.
Top Gainers:
• Royal Exchange: +10% closing at 88k
• Livestock Feeds: +9.87% closing at N9.24
• Abbey Mortgage Bank: +9.72% closing at N3.95
• Universal Insurance: +9.62% closing at 57k
• Sunu Assurance: +9.22% closing at N5.45
Top Losers:
• Nem Insurance: -9.63% closing at N12.20
• United Capital: -9.29% closing at N16.60
• Computer Warehouse Group: -6.67% closing at N8.40
• DAAR Communications: -6.06% closing at 62k
• Africa Prudential: -5.56% closing at N15.30
Volume and Value of Trades
• Total Volume Traded: 440.52 million shares (compared to 397.21 million shares traded last Friday)
• Total Value Traded: N10.47 billion (down from N14.17 billion recorded on Friday)
• Total Number of Transactions: 13,314 trades
Top Traded Stocks by Volume:
1. Zenith Bank: 55.06 million shares, worth N2.61 billion
2. FCMB: 49.59 million shares, worth N449.09 million
3. UBA: 47.39 million shares, worth N1.84 billion
4. Access Corporation: 37.24 million shares, worth N834.09 million
5. Fidelity Bank: 31.30 million shares, worth N563.89 million
Expert Insight:
According to David Adonri, Vice President of Highcap Securities Ltd., the significant N369 billion market gain is largely attributed to UBA’s dividend announcement, which has given investors renewed confidence in the banking sector. Adonri explained that while banks had faced challenges with delayed financial results, UBA’s timely corporate disclosure regarding its N3 dividend restored optimism among market players.
“The banking sector is the backbone of the Nigerian stock market. UBA’s announcement effectively restored investor confidence in the sector, leading to the positive market movement today,” Adonri stated. He further emphasized that the banking sector remains a major driver of stock market performance, and the announcement of dividends has been a critical factor in propelling market growth.
This sentiment is echoed by many market analysts, who believe that as more companies announce dividends, investor activity and market liquidity will continue to rise, creating an environment conducive for long-term growth in the Nigerian stock market.
Conclusion:
The rally in the stock market, spurred by UBA’s dividend payout, is a significant positive indicator for the Nigerian market. With strong performances from key sectors, the market remains poised for growth, as investor sentiment rebounds strongly from prior weeks of uncertainty. Investors will be watching closely as more companies release their financial results and make similar dividend announcements in the coming weeks.
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