The Nigerian Exchange Limited (NGX) rebounded strongly yesterday with market capitalisation rising by N240 billion to close at N65.499 trillion.
The All-Share Index (ASI) gained 381.93 points, or 0.37% to finish the session at 104,233.81 points.
The surge in market activity was driven by price increases in large and medium-capitalised stocks such as Nigerian Breweries, Ecobank Transnational Incorporated (ETI), Oando, Custodian Investment and Fidelity Bank.
The upturn was largely attributed to renewed investor interest in key stocks with Nigerian Breweries seeing a remarkable 9.86% gain to close at N36.20 per share.
ETI also saw strong performance as it appreciated by 8.94% to close at N29.25 while Oando added 6.42% to close the day at N40 per share.
Abbey Mortgage Bank topped the gainers’ list, rising by 9.94% to close at N8.96 per share followed by Nigerian Breweries and ABC Transports, which climbed 9.23% to close at N1.42.
Despite the overall market rebound, sentiment as measured by market breadth was negative with 23 stocks losing value compared to 24 gainers.
The highest losers included SUNU Assurance, which declined by 9.91% to N5, and Ellah Lakes, which fell by 9.76% to N3.05. Other notable losers included Cornerstone Insurance and Sovereign Trust Insurance.
Trading activity was robust with total volume traded increasing by 7.01% to 376.292 million units, valued at N7.906 billion.
Transactions in Universal Insurance led the day’s trading, with 89.266 million shares worth N44.369 million changing hands.
Fidelity Bank followed closely with 49.529 million shares valued at N915.905 million while Access Holdings and Zenith Bank traded 32.857 million and 15.577 million shares, respectively.
Analysts from Vetiva Dealings and Brokerage have projected that the market might see a quieter session as it heads into the Easter break, noting that market activity typically slows post-holiday.
However, they also pointed out that the recent momentum in banking and consumer goods stocks could help maintain a positive sentiment for the next trading session.
While the market closed on a positive note, investors remain cautious with weak buy-side turnover, which may continue to keep risk appetite in check.
Still, the overall optimism surrounding stocks like Nigerian Breweries, Ecobank, and Oando indicates growing confidence in the Nigerian market as it continues to show resilience in the face of economic uncertainty.
