Nigerian Stock Market Rebounds, Gains N96bn as Key Stocks Surge

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The Nigerian Exchange Limited (NGX) rebounded on Wednesday, with investors gaining N96 billion in market value, reversing a N68 billion loss from the previous trading session. The boost in market capitalization brought it to N59.03 trillion, reflecting a 0.16% increase driven by strong performances in stocks like International Energy Insurance Plc, JohnHolt, and Eunisell.

The NGX’s All Share Index (ASI) also climbed by 0.16% to 97,418.83 points. Sector-wise, the market performance was mostly positive, with gains in the banking (1.38%), consumer goods (0.38%), and industrial (0.01%) sectors, while the insurance sector declined by 0.58%.

Market sentiment was bullish, with 30 stocks advancing and 19 declining. International Energy Insurance led the gainers’ chart with a 10% rise to N1.32 per share, followed by JohnHolt, which gained 9.98% to close at N6.39. Eunisell Interlinked rose 9.88% to N10.90, Thomas Wyatt appreciated by 9.71% to N1.92, and UPL gained 9.09% to reach N0.30 per unit.

On the losers’ chart, insurance companies led declines: Regency Alliance Assurance shed 10% to N0.45, Daar Communication dipped by 7.46% to N0.62, Sovereign Insurance lost 6.35% to N0.59, Universal Insurance dropped 5.88% to N0.32, and NEM Insurance decreased by 5.88% to N8.

Overall trading activity was slightly subdued compared to Tuesday, with the number of deals, trading volumes, and total values falling by 17.52%, 27.53%, and 16.53%, respectively. A total of 247.01 million shares changed hands across 8,305 transactions, valued at N7.51 billion.

Financial stocks dominated trading, with AccessCorp leading in volume with 40 million shares valued at N979.6 million across 490 deals. United Bank for Africa followed with 23.7 million units worth N761.21 million. Fidelity Bank, United Capital, and Guaranty Trust Holding Company also saw high interest.

In terms of traded value, newly listed Aradel led with 3.32 million units valued at N1.68 billion exchanged in 810 transactions.

Tuesday’s market losses were due to a decline in shares of VFD Group (-10%), Oando Plc (-9.42%), and Dangote Sugar (-4.83%), among others. However, Wednesday’s performance indicates renewed investor confidence, particularly in energy and financial stocks, which helped drive the NGX back into positive territory.

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