Market capitalisation rises N100.51bn as ASI halts losing streak
The Nigerian equities market staged a modest recovery on Thursday as investors returned to selected counters, particularly in the oil and gas and commodity-linked segments, pushing the market’s capitalisation higher by N100.51 billion.
The rebound came after recent sessions of losses, with bargain hunters taking advantage of price declines to accumulate stocks considered relatively attractive at current levels.
The NGX All-Share Index (ASI) rose marginally by 0.06 per cent to close at 242,378.13 points, bringing the market’s year-to-date return to 55.76 per cent.
Consequently, total market capitalisation increased by N100.51 billion, closing at N157.15 trillion.
The session was characterised by a sharp increase in trading volume and value, although the number of transactions recorded on the exchange declined. Total volume jumped by 161.79 per cent to 1.4 billion shares, compared with the previous trading session.
Similarly, the total value of transactions rose by 21.83 per cent to N27.4 billion, pointing to increased activity in selected stocks.
However, the number of deals executed fell by 1.54 per cent to 46,218 transactions. The divergence between rising volume and declining deal count suggested that a substantial portion of the day’s activity was concentrated in a relatively small number of counters.
Oil and gas stocks lead recovery
The oil and gas segment emerged as the strongest driver of the market’s recovery, with investors showing renewed interest in stocks that had recently experienced price weakness.
Seplat Energy topped the gainers’ table, appreciating by 10.00 per cent. Japaul Gold and Ventures followed closely, gaining 9.83 per cent, while Tantalizer advanced by 8.29 per cent.
The performance of Seplat Energy helped reinforce the renewed interest in energy-related stocks as investors continued to reassess opportunities across the market.
However, the session also produced steep losses in several counters.
Aradel Holdings dropped by 10.00 per cent, matching the decline recorded by R.T. Briscoe. Champion Breweries also came under considerable selling pressure, falling by 9.91 per cent.
Sector performance remains divided
The broader sectoral picture reflected continued rotation among sectors and individual stocks, with strong performances in oil and gas and commodities offset by losses in financial and other key segments.
The Oil & Gas sector recorded the biggest gain of the day, rising by 6.39 per cent, while the Commodity sector advanced by 4.65 per cent.
In contrast, the Insurance sector suffered the steepest decline, falling by 7.70 per cent. The Banking sector also recorded significant losses, declining by 5.14 per cent.
The Industrial sector shed 3.76 per cent, while the Consumer Goods sector fell by 2.63 per cent.
The mixed sectoral performance underscored the cautious approach adopted by investors, with funds shifting towards selected counters rather than producing a broad-based rally across the exchange.
Investors position ahead of Dangote Refinery IPO
Market sentiment is expected to remain cautious in the coming sessions as investors continue to adjust their portfolios ahead of the proposed initial public offering (IPO) of Dangote Refinery.
The IPO, which is expected to commence at the start of the coming week, is likely to attract significant investor attention and could influence liquidity and positioning across the equities market as investors seek to determine how best to allocate available funds.
Analysts expect the anticipation surrounding the offer to remain a major factor shaping market behaviour in the short term, particularly as investors weigh existing equity positions against opportunities that could emerge from the new offering.
Naira gains at official market
Meanwhile, activity in the foreign exchange market showed mixed movements on Thursday.
The Central Bank of Nigeria (CBN) sold $151.0 million at rates ranging between N1,322.71/$ and N1,331.50/$.
At the official window, the naira appreciated by 0.45 per cent to close at N1,328.00/$.
The currency, however, moved in the opposite direction in the parallel market, where it depreciated by 0.36 per cent to N1,395.00/$.
The divergent movements across the official and parallel segments continue to highlight the uneven dynamics in the foreign exchange market, with developments in liquidity, dollar supply and investor demand likely to remain important factors for market participants.
For equities investors, the combination of currency movements, sector rotation and the anticipated Dangote Refinery IPO is expected to keep trading activity closely watched in the coming sessions.