Nigerian Stock Market Stages Impressive Rebound with N93 Billion Gain
The Nigerian stock market experienced a significant recovery on Tuesday, bouncing back from previous session losses to record substantial gains across key indicators. This positive movement reflects renewed investor confidence and strategic buying activity in select equities that drove the market upward.
Market Indicators Show Strong Recovery
At the close of trading, the NGX All-Share Index (ASI) demonstrated resilience by climbing 144.33 points, representing a 0.09 percent increase to settle at 166,256.83 points from the previous day's close of 166,112.50 points. More significantly, market capitalization witnessed a substantial boost, rising by N93.48 billion to reach N106.44 trillion from N106.34 trillion recorded in the previous session.
The market's recovery was primarily fueled by renewed buying interest across various sectors, with investors strategically positioning themselves in equities showing strong potential. This positive sentiment created a favorable trading environment that allowed the market to overcome recent downward pressures.
Top Performers Lead Market Recovery
Several stocks emerged as standout performers, driving the market's upward trajectory with impressive gains:
- Red Star Express recorded a 10.00 percent increase, rising from N14.50 to N15.95
- Deap Capital Management & Trust advanced 10.00 percent, moving from N4.90 to N5.39
- NPF Microfinance Bank gained 10.00 percent, increasing from N4.30 to N4.73
- NCR Nigeria jumped 9.97 percent, climbing from N141.40 to N155.50
- Morison Industries rose 9.97 percent, moving from N6.22 to N6.84
Overall, thirty-nine stocks recorded advances during the trading session, significantly outnumbering declining stocks and demonstrating broad-based market strength.
Sector Performance and Trading Activity
Trading activity remained robust throughout the session, with a total of 795.46 million shares valued at N19.98 billion exchanged across 45,390 deals. The most actively traded stocks included:
- Tantalizers led activity with 86.96 million shares valued at N300.92 million
- Secure Electronic Technology traded 74.15 million shares worth N87.56 million
- Zichis Agro Allied Industries exchanged 69.60 million shares valued at N138.50 million
- Zenith Bank recorded 49.10 million shares worth N3.53 billion
- GTCO traded 39.05 million shares valued at N3.79 billion
Notable Decliners Amid Market Recovery
Despite the overall positive market performance, some stocks experienced declines during the trading session:
- Aluminium Extrusion Industries fell 9.95 percent, dropping from N19.10 to N17.20
- Jaiz Bank declined 9.88 percent, moving from N8.00 to N7.21
- FTN Cocoa Processors dropped 8.44 percent, decreasing from N7.70 to N7.05
- UPDC slipped 8.06 percent, falling from N6.20 to N5.70
- Caverton Offshore Support Group declined 5.59 percent, moving from N8.05 to N7.60
Research Highlights Banking Sector Strength
Recent research by Renaissance Capital Africa has reinforced confidence in Nigeria's banking sector, particularly highlighting Zenith Bank's strong fundamentals. The comprehensive review identified Zenith Bank as a top conviction pick, reflecting the institution's balance sheet strength, earnings quality, and long-term value proposition.
According to the research findings, despite the strong performance of the NGX Banking Index in recent periods, Zenith Bank's current market valuation does not yet fully reflect its improving fundamentals, suggesting potential for further upside movement. This analysis provides additional context for understanding the broader market dynamics influencing investor decisions.
The market's recovery represents a significant shift in sentiment, demonstrating the resilience of Nigeria's capital markets amid varying economic conditions. As investors continue to assess opportunities across sectors, this rebound suggests growing confidence in the market's ability to deliver value despite ongoing challenges.
