The Nigerian Exchange (NGX) saw a strong rebound yesterday, reversing earlier losses as investors took advantage of bargain opportunities in key stocks like Beta Glass and Oando. This positive shift lifted the overall market capitalization by N314 billion, pushing it up to N68.36 trillion. The all-share index also gained 501.14 points, or 0.46%, closing at 108,762.61 points, signaling renewed confidence in the equity market.
The rally was largely driven by gains in medium to large-cap stocks, with strong showings from companies such as Transcorp, Nigerian Breweries, and Industrial and Medical Gases. Analysts from Afrinvest attributed this recovery to improved Q1 earnings and reduced activity in the fixed income market, while Vetiva noted that investors are zeroing in on fundamentally strong stocks across sectors, which could sustain this bullish run if the momentum holds.
Investor sentiment appears to be improving too, with 40 stocks posting gains compared to 24 decliners. Notable risers included Chellaram and Oando, each gaining 10%, while Transcorp and Beta Glass weren’t far behind with nearly 10% increases. However, the losers’ chart was led by Haldane McCall, which dropped by 9.85%, followed by Academy Press and UPDC, among others.
Trading activity was also on the rise, with total volume increasing by 20% to 498.48 million units, worth N10.78 billion. Tantalizer led the volume chart with nearly 58 million shares traded, followed by Access Holdings and GTCO, which saw impressive transaction values. Fidelity Bank and Nigerian Breweries also recorded strong trading numbers.
Overall, the bounce-back reflects renewed interest in equities and signals a potential trend reversal, especially with investors eyeing undervalued stocks. If this momentum continues, we could be looking at a more sustained bullish phase in the market. It’s a space to watch closely in the coming days.
Source: The Guardian