The Nigerian Exchange experienced a remarkable resurgence on Wednesday, erasing the previous day’s losses and posting its largest single-day gain of the week. A surge in buying interest, particularly in insurance and oil and gas stocks, propelled the All-Share Index upwards by 1.95 percent, adding 2,246.00 points to close at 117,156.16 basis points. This bullish activity translated into a substantial N1.18 trillion increase in market capitalization, boosting the total value of listed companies to N73.7 trillion from N72.5 trillion the previous day. This impressive rebound underscored the market’s resilience and potential for growth despite prevailing macroeconomic challenges. The positive momentum suggests renewed investor confidence and lays the groundwork for continued market recovery in the short term.
The market’s robust performance was largely driven by significant gains in heavyweight stocks within the insurance and oil and gas sectors. NEM Insurance emerged as the day’s top performer, recording a 10 percent increase in share price, closing at N16.50 per share. Seplat Energy, another significant player in the oil and gas sector, followed closely with a 9.78 percent appreciation, closing at N5,450.00 per share. Thomas Wyatt Nigeria and Linkage Assurance also contributed to the positive sentiment with gains of 9.73 percent and 9.56 percent, respectively. These significant price jumps in influential stocks had a ripple effect across the market, contributing significantly to the overall index gains and bolstering investor optimism.
Sectoral performance further emphasized the dominance of the oil and gas and insurance sectors. The Oil & Gas Index registered the highest gain of the day, surging by 7.49 percent. This impressive performance likely reflects renewed investor confidence in the sector, potentially driven by global oil price dynamics or company-specific developments. The Premium Index, which tracks the performance of insurance companies, also witnessed a considerable uptick, appreciating by 3.52 percent. The Banking Index and Insurance Index followed suit with gains of 3.25 percent and 2.02 percent, respectively. This broad-based sectoral growth indicates a healthy market environment and suggests that the positive momentum is not confined to a few select industries.
Trading activity on the NGX involved 130 listed equities, with 37 gainers and 31 losers. This largely positive breadth, with more advancing than declining stocks, further reinforces the prevailing bullish sentiment. While the market experienced a significant upswing, not all companies benefited from the day’s rally. Eterna Plc led the decliners with a 10 percent drop in share price, followed by Secure Electronic Technology (-9.68 percent), Legend Internet (-9.66 percent), and FTN Cocoa Processors (-6.07 percent). This mixed performance emphasizes the inherent volatility in the stock market, where individual company performance can diverge from the overall market trend.
Trading volume and value provided additional insights into market dynamics. Zenith Bank dominated trading volume with 150 million shares traded, followed by Access Holdings (48.6 million), United Bank for Africa (43 million), and Nigerian Breweries (37.7 million). Although the total volume traded declined by 19 percent compared to the previous session, the market turnover actually improved by 1 percent, reaching N26.01 billion. This suggests that while fewer shares were traded, the value of those trades was higher. The number of deals, however, declined by 15 percent to 19,727, potentially indicating a shift in trading strategies towards larger block trades.
The Wednesday rally significantly improved the NGX’s performance metrics over various timeframes. The market recorded a one-week gain of 2.75 percent, a four-week gain of 6.79 percent, and a year-to-date return of 13.83 percent. These positive figures demonstrate the market’s resilience and its ability to rebound from short-term setbacks. Analysts remain optimistic about the market’s near-term outlook, anticipating a positive close on Thursday driven by sustained investor confidence and continued bargain hunting. This positive projection, based on improved market sentiment and expected buying activity, suggests that the recent rally may signify a turning point for the NGX and potentially herald a period of sustained growth.
