NGX rebounds as equities market recovers N410bn

Nigeria’s equities market recovered from Monday’s sell-off on Tuesday, adding N410.86 billion to investors’ wealth as renewed buying interest lifted the Nigerian Exchange Limited (NGX) All-Share Index by 0.26 per cent.

The benchmark index rose to 245,911.13 points from 245,278.34 points recorded in the previous session, while market capitalisation increased to N159.67 trillion from N159.26 trillion.

The rebound followed Monday’s 0.91 per cent decline, which wiped N1.47 trillion off market value, as investors returned to selected stocks amid bargain-hunting activities.

The latest gain also strengthened the market’s year-to-date return to 58.03 per cent, reflecting the substantial appreciation in equities despite recent profit-taking and intermittent losses.

Market breadth improved to 1.3 times, with 27 stocks advancing against 21 decliners, indicating a positive shift in investor sentiment during the session.

AUSTINLAZ, ABC Transport, Cutix, Thomas Wyatt Nigeria and Caverton Offshore Support Group led the gainers, while Livestock Feeds, Guinea Insurance, NPF Microfinance Bank, Mutual Benefits Assurance and AIICO Insurance featured among the decliners.

The recovery, however, was not broad-based across sectors, as gains in banking and insurance stocks were partly offset by losses in industrial and consumer goods equities.

The banking and insurance indices rose by 0.15 per cent each, while the industrial goods index declined by 1.17 per cent. The consumer goods sector shed 0.29 per cent, while oil and gas stocks edged down by 0.01 per cent. The commodities sector closed flat.

The divergent sectoral performance suggests that buying interest remained selective, with investors positioning in specific stocks rather than extending purchases across the broader market.

ALSO READ: NGX sheds N1.47trn as sell-off deepens, ASI drops 0.91%

Trading activity was mixed, as the value of transactions increased significantly despite declines in the volume of shares traded and the number of deals executed.

A total of 348.75 million shares exchanged hands in 32,639 deals, representing declines of 0.19 per cent and 24.43 per cent, respectively, compared with the preceding session.

However, transaction value rose by 43.52 per cent to N25.88 billion, indicating a substantial increase in the value of securities traded during the session.

The combination of higher turnover and a decline in deal count points to a change in the composition of trading activity, although the available market data does not establish whether the increase resulted from larger transactions or a shift towards higher-priced stocks.

The recovery comes as investors navigate a market that has delivered strong year-to-date returns but has recently experienced bouts of profit-taking, particularly in heavyweight stocks that have contributed to the market’s earlier rally.