The Nigerian equities market staged a strong recovery on Wednesday, delivering a welcome relief to investors following a steep market downturn. The All-Share Index (ASI) surged by 2.88 per cent to close at 145,403.83 points, while the market capitalisation of the Nigerian Exchange Limited (NGX) rose to N92.48 trillion, resulting in a N2.59 trillion gain for investors.
Tuesday had seen a sharp 5.01 per cent drop in the ASI, the steepest decline since 2010, with only four stocks closing higher against 61 laggards. Analysts described the sell-off as largely driven by profit-taking and market jitters, leaving investors with a daily loss of N4.64 trillion. The market’s rebound signals renewed confidence among traders and institutional investors.
Midweek gains were largely powered by bargain-hunting in blue-chip stocks. MTN Nigeria rose by 9.95 per cent, Aradel by 8.93 per cent, and Nigerian Breweries surged 10 per cent. Banking stocks such as Guaranty Trust Holding Company (GTCO) and Zenith Bank each gained 10 per cent, reflecting strong investor appetite for established firms with solid fundamentals.
Trading volumes also picked up significantly, with 806.39 million shares valued at N50.79 billion changing hands—up 22.93 per cent in volume and 72.77 per cent in value. Market breadth was decisively positive, as 65 gainers overwhelmed 11 losers. GTCO led the volume chart with 104.8 million units, while Aradel topped the value chart at N12.9 billion.
Sectoral performance mirrored the bullish sentiment, with the banking index climbing 7.39 per cent, insurance 6.95 per cent, and oil & gas 4.11 per cent. Consumer goods and industrial stocks also recorded modest gains, while commodities slipped slightly by 0.03 per cent. Analysts at Cowry Asset Management noted that institutional investors were strategically entering the market, capitalising on attractive prices following Tuesday’s sharp correction.
source: punch