Nigeria’s stock market continued its impressive rebound on Tuesday as investors added N834.67 billion to the value of listed equities, driven largely by a strong performance from Airtel Africa and leading Tier-1 banking stocks. The Nigerian Exchange (NGX) All-Share Index advanced by 0.53 percent to close at 244,697.62 points, extending the market’s recovery streak to three consecutive trading sessions after a turbulent start to June.
The positive sentiment was spearheaded by Airtel Africa, which surged by the maximum daily limit of 10 percent to close at N4,021.20 per share. The telecom giant’s remarkable gain came amid renewed investor confidence in stocks with strong earnings potential and foreign currency exposure. In the banking sector, First HoldCo emerged as one of the biggest winners, jumping 8.49 percent to N69.00, while GTCO, Zenith Bank, Access Corporation and Wema Bank also recorded gains, signaling renewed institutional interest in Nigeria’s financial stocks.
Market activity remained robust as investors traded over 1.19 billion shares worth N51.35 billion across 52,207 deals. Sterling Financial Holdings dominated trading volume with more than 715 million shares exchanged, while Aradel Holdings topped the value chart with transactions worth N13.25 billion. Analysts noted that the increase in trading volume reflects growing confidence among investors who are gradually returning to the market following the sharp correction that wiped nearly N5 trillion from equities earlier this month.
Beyond the banking and telecommunications sectors, insurance stocks also attracted significant buying interest. International Energy Insurance, Abbey Mortgage Bank, Infinity Trust Mortgage Bank and NEM Insurance posted notable gains as retail investors continued to seek opportunities in undervalued counters. However, the market’s bullish momentum was tempered by losses in several heavyweight stocks, including Okomu Oil Palm, Unilever Nigeria, NAHCO, Learn Africa and Trans-Nationwide Express, all of which hit the maximum daily decline of 10 percent.
Despite these setbacks, market indicators suggest that investor sentiment is steadily improving. Tuesday’s N834.67 billion gain represents the largest single-day increase in market capitalization since the correction began on June 1. Combined with gains recorded in the previous two sessions, the market has now recovered approximately N1.58 trillion, or about 30 percent of the losses suffered during the recent downturn. With the NGX All-Share Index still about 3.1 percent below its all-time high, market watchers believe the ongoing recovery could gather further momentum if positive earnings expectations and institutional buying continue in the coming weeks.
source: nairametrics