Nigeria’s equities market gained ₦253 billion on Tuesday as institutional and retail investors increased exposure to undervalued stocks ahead of half-year (H1) portfolio rebalancing.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) rose by 0.36% to close at 112,427.48 points, up from the previous session’s 112,026.24 points.
Market capitalisation also advanced from ₦70.641 trillion to ₦70.894 trillion, driven by renewed demand for value and mid-cap stocks with strong fundamentals.
The year-to-date return now stands at 9.23%, supported by a 0.61% gain over the last two trading sessions.
SFS REIT, IMG, and Honeywell Flourmills Lead Gainers
Major price advancers included SFS REIT, which rose from ₦206 to ₦226.60, adding ₦20.60 or 10%. IMG followed closely with a 9.96% increase, moving from ₦33.65 to ₦37.
Honeywell Flourmills also gained 10%, rising from ₦20 to ₦22. SCOA advanced by 10%, moving from ₦4.90 to ₦5.39.
The price movement reflects heightened interest in fundamentally sound companies positioned to benefit from mid-year earnings season and broader macroeconomic adjustments.
Turnover Remains Strong Across Key Banking Stocks
Investors exchanged 622.64 million shares valued at ₦16.12 billion in 17,044 deals. Top traded stocks by volume and value included Fidelity Bank, Legend Internet, United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCO) and Access Holdings.
The banking sector remained a key driver of activity as market participants continued to reposition portfolios in anticipation of Q2 financial disclosures and recapitalisation-related guidance.
Analysts Caution on Potential Volatility
Despite the bullish sentiment, analysts at Lagos-based Vetiva Research highlighted the risk of downside volatility in the near term due to potential profit-taking and mixed performance across financials and mid-cap counters.
“Potential profit-taking and mixed performances across financials and mid-cap stocks could introduce downside volatility risks,” Vetiva stated in a post-trading note on Monday.
Outlook
Market sentiment remains moderately bullish, supported by portfolio reallocation strategies and investor positioning for interim dividend declarations.
The uptick in value stock demand also reflects improved confidence in Nigeria’s macroeconomic stability and anticipated policy clarity in the second half of the year.
As H1 earnings season approaches, analysts expect sector-specific performance and dividend announcements to dictate trading momentum in the coming weeks.
