After two consecutive days of losses, the Nigerian stock market staged a significant comeback on Wednesday, driven by renewed investor interest in key medium- and large-cap equities.
Market Bounces Back After Two-Day Dip
The Nigerian Exchange Limited (NGX) saw its market capitalisation climb by ₦1.184 trillion, representing a 1.63% increase. The market closed at ₦73.681 trillion, up from ₦72.497 trillion on Tuesday. The All-Share Index (ASI) mirrored this recovery, advancing by 1,876.71 points to settle at 116,786.87 from its previous 114,910.16.
This rebound reflects a surge in investor confidence, particularly in major stocks like Seplat Energy, NEM Insurance, Beta Glass, and Linkage Assurance, which were instrumental in lifting the market sentiment.
Broad-Based Gains Across Sectors
A total of 38 stocks recorded price appreciation, compared to 32 decliners, signaling a positive market breadth.
- NEM Insurance led the day's gainers with a 10% increase, closing at ₦16.50.
- Beta Glass followed closely, appreciating by 9.99% to end at ₦250.95.
- Seplat Energy rose 9.79% to finish at ₦5,450.
- Thomas Wyatt Nigeria added 9.73% to reach ₦2.03.
- Linkage Assurance gained 9.56%, closing at ₦1.49.
These performances highlight strong investor appetite for stocks with robust fundamentals and positive growth prospects.
Decliners Struggle Amid Overall Market Optimism
Despite the broad rally, several stocks posted significant losses. FG132026S1 topped the laggards, shedding 17.70% to close at ₦80. Other notable decliners included:
- Eterna Plc, down 10% to ₦38.70,
- Secure Electronic Technology, falling 9.68% to 56 kobo,
- Legend Internet, slipping 9.66% to ₦6.55,
- FTN Cocoa Processors, losing 6.07% to close at ₦2.63.
These drops suggest continued volatility in some corners of the market, particularly among lower-cap and less liquid stocks.
Trading Volume Slows but Value Increases
Market activity saw a slight decline in volume but a rise in value. A total of 640.08 million shares worth ₦26.01 billion were exchanged in 19,727 deals, down from Tuesday's 787.31 million shares valued at ₦25.67 billion in 23,170 transactions.
Leading the activity chart was Zenith Bank, with 149.92 million shares traded at a value of ₦7.21 billion. Other actively traded stocks included:
- Access Corporation: 48.64 million shares worth ₦1.01 billion
- United Bank for Africa (UBA): 42.99 million shares valued at ₦1.46 billion
- Nigerian Breweries: 37.72 million shares worth ₦2.19 billion
- Fidelity Bank: 30.84 million shares totaling ₦568.54 million
Outlook: Volatility with Pockets of Opportunity
While the week began on a bearish note, Wednesday's rally offers a glimmer of hope for market participants. The gains in heavyweight and fundamentally strong stocks suggest that investors are selectively positioning themselves for long-term value.
However, continued caution may prevail as global and domestic economic signals remain mixed. Market watchers will be keen to see whether this momentum can be sustained or if volatility will persist in the days ahead.