Nigerian Exchange Rebounds with N540 Billion Market Cap Gain Amid Renewed Investor Optimism

The Nigerian Exchange (NGX) bounced back strongly on Monday, adding N539.98 billion to its market capitalization and reversing losses from the previous week. The All-Share Index climbed 924.38 points (0.85%) to close at 109,953 basis points, lifting the market cap from N68.8 trillion to N69.3 trillion. This surge signals renewed investor confidence across key sectors.

The recovery was largely driven by significant gains in large and mid-cap stocks, with Aradel Holdings Plc leading the charge, surging nearly 10% to N505.90 per share. Other notable gainers included University Press Plc, Associated Bus Company Plc, and Linkage Assurance Plc, all posting increases above 8%. However, some stocks such as Tripple Gee & Company Plc and MRS Oil Nigeria Plc saw sharp declines nearing 10%.

Despite the upbeat market performance, trading volume dropped by 35% compared to the previous Friday, while turnover decreased by 39%. Interestingly, the number of deals rose by 24%, indicating increased investor activity albeit with smaller transaction sizes. Fidelity Bank Plc was the most actively traded stock with 46.8 million shares exchanged.

Broader market indices also posted gains, with the NGX Oil & Gas Index up 3.02%, Consumer Goods rising 2.2%, and the Main Board increasing by 1.12%. Year-to-date, the All-Share Index has returned 6.83%, reflecting cautious optimism as investors navigate challenges such as interest rate and currency volatility.

Analysts at Afrinvest had predicted this rebound, attributing it to bargain hunting and investors capitalizing on re-entry opportunities in fundamentally strong stocks following recent price drops. This comes after a bearish end to the previous week, when the NGX lost ₦197 billion amid weak sentiment and profit-taking.

Source: Punch