The Nigerian equities market opened the week on a positive note as investor sentiment rebounded, lifting the benchmark Nigerian Exchange Limited (NGX) All-Share Index (ASI) by 0.56% to close at 105,551.39 points, up from 104,962.96 points at the previous session.
The market capitalisation appreciated by ₦369 billion to settle at ₦66.19 trillion from ₦65.82 trillion recorded last week.
This recovery follows a week of bearish performance where the market lost ₦532 billion due to sustained sell pressure.
The rebound was largely driven by renewed buy-side activity, particularly in stocks with strong fundamentals, favourable corporate actions, and positive earnings expectations ahead of the full-year 2024 results.
Analysts have pointed to growing interest in banking stocks and select mid-cap equities as investors seek value opportunities amid recent price corrections.
Livestock Feeds Plc led the top gainers’ chart, appreciating by 9.87% from ₦8.41 to ₦9.24. Abbey Mortgage Bank advanced by 9.72%, closing at ₦3.95 from ₦3.60, while Sunu Assurances gained 9.22%, rising from ₦4.99 to ₦5.45.
Investor participation also improved, with a total of 440.52 million shares exchanged in 13,314 deals, valued at ₦10.47 billion.
Leading the activity chart were Zenith Bank, FCMB Group, UBA, Access Holdings, and Fidelity Bank, all of which witnessed significant volume and value turnover.
Market analysts at Futureview Research noted that the market’s positive turn is being supported by expectations of corporate earnings announcements and dividend declarations, especially within the banking sector.
“The market is poised for a positive trend, driven by renewed investor interest in undervalued stocks,” the firm stated.
Similarly, analysts at CardinalStone Partners in their March 24 Model Equity Portfolio commentary indicated that attention would remain on expected financial disclosures and policy declarations.
“We will continue to monitor the market for attractive entry and exit points and adjust our portfolio accordingly,” the firm noted.
Despite the renewed optimism, United Capital Research maintained a cautious outlook in its latest report.
“The equities market is expected to improve marginally as investors position for the FY-2024 earnings season and corporate action declarations. However, the elevated interest rate environment in the fixed income market may continue to weigh on sentiment.”
As the earnings season approaches, investor focus is expected to sharpen on companies with robust balance sheets and consistent dividend histories.
While market volatility remains a key theme, the current uptick signals a potential rotation back into fundamentally sound equities as investors seek capital appreciation and income returns.
With liquidity still relatively stable and macroeconomic reforms underway, the NGX may continue to experience measured recoveries, especially in sectors poised to benefit from corporate earnings momentum and sectoral resilience.
