The Nigerian equities market staged a sharp recovery on Thursday, recording a N1.58 trillion gain as buying interest surged across blue-chip stocks. The market capitalisation of the Nigerian Exchange Limited (NGX) rose to N56.72 trillion from N55.14 trillion at the close of trading on Wednesday, reflecting a 2.86% increase.
Market indices and sector performance
The All-Share Index (ASI) climbed by 2,782.21 points to close at 99,876.34, bringing the year-to-date return to 33.14%. The rally was driven by gains in major stocks such as Dangote Cement, MTN Nigeria, and BUA Foods, which collectively contributed over N800 billion to the market capitalisation.
According to analysts at Vetiva Securities, the positive sentiment was largely due to bargain hunting after recent price declines. "Investors took advantage of lower valuations to accumulate positions in fundamentally sound companies," the analysts noted.
Top gainers and losers
Dangote Cement led the gainers, rising by 10% to close at N450.00 per share. MTN Nigeria followed with a 9.8% increase to N240.00, while BUA Foods gained 8.5% to N320.00. On the losing side, Nestle Nigeria declined by 2.1% to N1,200.00, and Guinness Nigeria dropped 1.5% to N90.00.
Trading activity also improved significantly, with total volume rising by 45% to 450 million shares valued at N8.2 billion, compared to 310 million shares worth N5.6 billion on Wednesday.
Market outlook and analyst commentary
Market analysts at Afrinvest Securities described the rebound as a positive signal, but cautioned that volatility may persist due to macroeconomic uncertainties. "The market is reacting to improved liquidity and positive corporate earnings expectations. However, investors should remain vigilant given the prevailing interest rate environment," they said.
The NGX recorded 28 gainers against 12 losers, indicating broad-based buying interest. The banking index rose by 1.2%, the insurance index gained 0.8%, and the consumer goods index increased by 1.5%.
Economic context and investor sentiment
The rebound comes amid mixed economic signals, including rising inflation and a volatile foreign exchange market. However, the Central Bank of Nigeria's recent monetary policy tightening has attracted foreign portfolio investors seeking higher yields. According to data from the NGX, foreign inflows into the stock market increased by 12% in June compared to May.
"The N1.58 trillion gain is a testament to the resilience of the Nigerian equities market. We expect continued interest from both local and foreign investors as corporate earnings season unfolds," said a senior analyst at Cordros Capital.
