By Favour Pius
The Nigerian Exchange Limited (NGX) sustained its bullish momentum in April, delivering a 20.36 per cent gain to extend its winning streak to five consecutive months, driven by sustained investor interest in banking and large-cap stocks.
Market data showed that the NGX All-Share Index (ASI) climbed sharply during the month, reflecting renewed confidence in equities amid portfolio repositioning and expectations of stronger corporate earnings.
The rally was largely underpinned by increased demand for fundamentally sound stocks, particularly in the banking sector, as investors continued to respond to ongoing recapitalisation moves and improved earnings outlook.
Analysts attributed the sustained uptrend to a combination of domestic liquidity inflows and gradual return of foreign portfolio investors, supported by recent reforms in the foreign exchange market.
They noted that the equities market has remained attractive relative to fixed income instruments, with investors seeking higher yields in the face of inflationary pressures.
“April’s performance reinforces the strength of the current bull run, with positioning in bellwether stocks driving market breadth,” a Lagos-based investment analyst said, adding that momentum could be sustained in the near term if macroeconomic conditions remain stable.
The five-month rally marks one of the longest bullish runs in recent years, highlighting a significant recovery in investor sentiment following periods of volatility.
However, market watchers cautioned that profit-taking could moderate gains in the coming weeks, particularly as investors reassess valuations after the sharp price appreciation recorded across key sectors.
They also pointed to macroeconomic risks, including inflation and interest rate movements, as factors that could influence market direction.
Despite these concerns, the outlook for equities remains broadly positive, with expectations that strong corporate earnings and ongoing reforms will continue to support market performance.
The NGX’s April surge further underscores the growing role of the capital market in mobilising investment and supporting economic growth, even as policymakers push for broader financial market deepening.
