The Nigerian Exchange Limited (NGX) rebounded on Tuesday from the previous day’s losses with a gain of N25.72 billion.

This rebound was primarily driven by significant appreciation in the shares of Cornerstone Insurance, Jaiz Bank, Wapic Insurance, and 19 other stocks.

The market capitalisation rose by 0.05 percent to close at N56.61 trillion, while the All Share Index (ASI) increased to 100,067.77 points.

Insurance stocks were at the forefront of this recovery. Cornerstone Insurance led the gainers’ chart with a 10 percent increase to settle at N2.09 per share.

Jaiz Bank followed closely with a 9.95 percent rise to N2.21, and Wapic Insurance saw a 9.59 percent boost, ending the day at N0.80 per share.

Despite the overall positive trend, the market witnessed bearish activity, with 22 stocks recording gains and 24 stocks registering losses.

Leading the losers’ chart were RT Briscoe, which suffered a 9.86 percent decline to close at N0.64, Cutix Plc with a 6.82 percent drop to N4.01, and C & I Leasing Plc, which fell by 6.25 percent to N3.00.

In terms of trading volume, Universal Insurance recorded the highest activity with 61.52 million traded shares. AIICO Insurance followed with 31.72 million shares, and United Bank for Africa (UBA) saw 25.85 million shares traded.

Sectoral performance was mixed, with three out of the five tracked indices closing in the red. The NGX Consumer Goods index fell by 0.34 percent, NGX Oil/Gas by 0.03 percent, and NGX Industrial Goods by 0.01 percent.

However, the NGX Banking index posted a 0.79 percent increase, driven by share price gains in major banks such as AccessCorp, Zenith, UBA, and GTCO. Additionally, the NGX Insurance index recorded a 1.99 percent gain.

Market activity was robust, with the total volume and value of trades rising by 33.11 percent and 10.86 percent, respectively, amounting to 365.64 trades worth N4.12 billion.

However, the total number of deals decreased by 14.31 percent, totaling 8,665 trades.

This recovery follows a bearish start to the week and month on Monday, where the NGX-ASI fell by 0.4 percent to 100,020.83 points due to sell pressure on major stocks such as Zenith Bank, UBA, and Nigerian Breweries.

The positive performance of insurance and banking stocks played a crucial role in reversing the market’s fortunes.

Investors remain hopeful that this upward trend will continue, bolstered by strong performances in these sectors.

The Nigerian equities market began the month of July on a slightly negative note with the All Share Index (ASI) dipping by 0.04% at the close of trading on Monday, July 1.

This decrease translated to a loss of approximately N21 billion for investors, a cautious start to the second half of the year.

The Nigerian Exchange Limited (NGX) reported that the ASI and Market Capitalisation fell from the previous trading day’s highs of 100,057.49 points and N56.601 trillion, respectively, to 100,020.83 points and N56.580 trillion.

Meristem research analysts, in their July 1 note to investors, highlighted the possibility of “cautious optimism” in the equities market, driven by renewed investor confidence.

“We anticipate heightened market activity this week as investors and portfolio managers reassess their positions for the second half of the year,” the note read.

The analysts foresee profit-taking on stocks with significant gains, while others might seek to average down their losses by buying underperforming stocks.

In 10,112 deals, investors exchanged 274,682,596 shares worth N3.712 billion. The year-to-date (YtD) return stood lower at 33.76%.

Meristem analysts also noted that corporate actions in the banking sector could spur buying interest throughout the week, potentially driving market activity.

United Capital research analysts echoed a similar sentiment, suggesting a mixed outlook for the equities market.

“Looking ahead, the equities market would be mixed as investors explore opportunistic investment strategies,” they stated.

They anticipate a focus on fundamentally sound stocks and increased market activities due to ongoing bank recapitalizations, second-quarter filings, and expected corporate actions in the coming weeks.

However, they cautioned that elevated interest rates in the fixed income market could negatively impact the equities market.

“Investors may continue to take advantage of high interest rates in the fixed income space,” they noted.

Despite the challenges, analysts from both firms advised fund managers and investors to adopt an opportunistic investment strategy, leveraging market opportunities as they arise.

As the market navigates the complexities of the second half of the year, a strategic and cautious approach will be essential for mitigating risks and maximizing returns.

At the 59th Annual General Meeting (AGM) of Chemical and Allied Products Plc (CAP), shareholders approved a final dividend of N1.55 kobo per 50 kobo ordinary share, bringing the total dividend declared for the 2023 financial year to a significant N1.26 billion.

The AGM, held recently in Lagos, highlighted the company’s financial performance and strategic initiatives that have driven its success.

Reviewing the company’s performance, CAP reported a 24% increase in revenue to N23.9 billion, up from N19.2 billion in 2022.

Board Chairman Mr. Folasope Aiyesimoju attributed the growth to the dedicated efforts of the team, loyal customers, and resilient business strategies.

He noted that the company’s gross profit rose by 18% to N9 billion, while profit before tax increased by 10% to N3.8 billion.

CAP’s Managing Director, Mrs. Bolarin Okunowo, addressed the shareholders, highlighting the company’s financial achievements despite challenging economic conditions.

“Our exceptional results in 2023 underscore our resilience and adaptability in navigating macroeconomic headwinds. These achievements are a testament to the strength of our team and business model,” she said.

The profit for the year saw a 6% increase to N2.5 billion with earnings per share rising to 309 kobo.

Looking ahead, Mrs. Okunowo outlined CAP’s strategic plans for future growth.

She said “We plan to aggressively increase our retail footprint in Nigeria while deepening our strategic partnerships and alliances. Our focus will be on expanding our market share across the decorative and industrial coatings segments.”

Mrs. Okunowo said the company is committed to delivering high-quality products and leveraging technology to drive growth and profitability.

“The positive macroeconomic outlook for 2024 provides a platform for CAP to expand its horizons and embrace growth.”

Shareholders at the AGM expressed satisfaction with the company’s performance and the board’s strategic direction. They commended the distribution of dividends and the commitment to sustaining shareholder value.

The meeting concluded with the re-election of Mr. Folasope Aiyesimoju and Dr. Vitus Ezinwa as Directors retiring by rotation, and the approval of Mr. Debola Badejo as a new Director.

With renewed optimism and confidence in its strategic direction, CAP remains committed to creating long-term value for stakeholders through innovation, operational excellence, and a customer-centric approach.

The company looks forward to another year of remarkable achievements and sustained growth.