The Nigerian equity market rebounded on Monday as investors re-entered fundamentally strong blue-chip stocks.
This lifted the Nigerian Exchange Limited (NGX) All-Share Index (ASI) by 0.62 percent and added N413 billion to the market capitalisation.
At the close of trading, the ASI increased from 106,042.57 points to 106,698.50 points while the market capitalisation rose from N66.647 trillion to N67.060 trillion.
Market data showed that 569,041,109 shares worth N18.934 billion were exchanged in 18,612 deals. Stocks such as Beta Glass Plc, Cadbury Nigeria Plc, The Initiates Plc, Caverton Offshore Support Group and Multiverse Mining and Exploration Plc led the list of top gainers.
Beta Glass advanced from N109.80 to N120.75, posting a gain of N10.95 or 9.97 percent. Cadbury gained N3.15 or 9.87 percent, moving from N31.90 to N35.05.
Multiverse rose by 60 kobo or 9.45 percent to close at N6.95. Caverton gained 26 kobo or 9.77 percent to settle at N2.92 while The Initiates appreciated by 49 kobo or 9.90 percent to close at N5.44.
Investor sentiment remained broadly positive, supported by expectations of earnings-driven rally.
Analysts at Futureview Research stated, “We expect a positive performance in the equities market this week, though the NTB auction may divert some liquidity. Sentiment should remain broadly positive, with investors focusing on undervalued, dividend-paying stocks for stable returns.”
The Debt Management Office (DMO) also announced the May edition of the Federal Government of Nigeria (FGN) Savings Bond with attractive yields.
The 2-year FGN Savings Bond due May 14, 2027, is priced at 16.173 percent per annum, while the 3-year bond due May 14, 2028, offers 17.173 percent per annum.
Despite the elevated yields in the fixed income space, institutional and retail investors continued to seek value in equities, particularly stocks with dividend potential and earnings upside.
Active trades on Monday were recorded in First Bank Holdings, GTCO, Access Holdings, Japaul Gold and Chams Plc.
The financial services sector remains dominant in volume and value terms, while industrial goods and consumer goods sectors saw renewed buying interest.
CardinalStone Research, in a strategy note, said it would reduce its exposure to Lafarge Africa Plc ahead of its N4 per share interim dividend markdown scheduled for May 12.
“This is to mitigate any potential drag on our Model Equity Portfolio (MEP) performance with the intention to re-enter at more attractive post-markdown levels,” the firm stated.
Looking ahead, United Capital Research expects mixed market performance driven by the elevated interest rate environment and the forthcoming Monetary Policy Committee (MPC) meeting.
The firm noted that some investors are booking profits after the recent rally, resulting in intermittent sell pressure on select counters.
“Generally, investors await the MPC decision. Concurrently, retail investors are engaging in profit-booking, resulting in selloffs that impede the consistent upward movement of stock prices,” United Capital said.
The broader outlook for equities remains cautiously optimistic, with analysts closely watching earnings results, macroeconomic data, and policy signals to guide short-term market positioning.
