The Nigerian Exchange Limited (NGX) experienced a rebound on Thursday, recovering some ground lost in the preceding days. The All-Share Index (ASI), a key indicator of market performance, climbed by 130.24 basis points, representing a 0.12% increase, concluding the trading day at 106,220.62 points. This positive movement injected N82 billion back into the market, boosting overall market capitalization. Despite this upswing, the market remained in negative territory over broader timeframes, reflecting a 0.52% decline over the past week and a more substantial 2.7% drop over the preceding four weeks. However, the year-to-date performance remained positive, showcasing a 3.2% gain, indicating an overall upward trajectory for the year.
The day’s trading activity revealed a mixed picture in terms of volume and value. A total of 341.7 million shares were exchanged in 11,233 deals, amounting to a total value of N16.65 billion. Compared to the previous trading session, these figures represent a sharp 77% decrease in trading volume, a significant 62% surge in turnover, and a moderate 4% decline in the number of deals. These fluctuations suggest shifts in investor behavior and potentially reflect profit-taking activities following recent market declines, coupled with renewed interest in specific stocks driving the increased turnover.
Investor sentiment presented a complex interplay of bullish and bearish pressures, with 123 equities actively traded. Of these, 36 stocks witnessed price appreciation, closing in the green, while 20 stocks experienced declines. Leading the gainers’ chart were UPDC Plc, International Breweries, and Royal Exchange Plc, with impressive gains of 9.92%, 9.62%, and 9.59% respectively. Multiverse Mining & Exploration also contributed to the positive sentiment, registering an 8.81% increase. Conversely, University Press Plc led the decliners, falling by 10%, followed by Academy Press (-9.66%), Red Star Express (-9.32%), and Neimeth International Pharmaceuticals (-8.33%). The mixed performance across individual stocks highlights the diverse factors influencing investor decisions and the varying fortunes of companies listed on the exchange.
Analyzing trading volume, Tantalizers Plc emerged as the most actively traded stock, with 29.6 million shares changing hands. Access Holdings trailed closely behind with 29.2 million shares, followed by Zenith Bank (28.7 million) and Guaranty Trust Holding Company (GTCO) (26.7 million). The high trading volume in these prominent financial institutions suggests continued investor interest in the banking sector, likely driven by factors such as earnings expectations, dividend payouts, and overall economic outlook. The substantial volume also underlines the liquidity of these stocks, enabling investors to easily enter and exit positions.
Sectoral performance mirrored the broader market’s mixed sentiment. The Consumer Goods Index saw a robust 1.4% gain, while the Insurance Index climbed 0.62% and the Main Board Index inched up by 0.22%. However, the Oil & Gas Index experienced a 1.07% decline, and the Industrial Index remained flat, indicating a lack of significant movement in that sector. These varying sectoral performances reflect the diverse dynamics influencing individual industries, including commodity prices, regulatory changes, and company-specific developments. The positive performance of the Consumer Goods and Insurance sectors suggests potential investor optimism regarding consumer spending and the insurance industry’s outlook, while the decline in the Oil & Gas sector could be attributed to fluctuating global oil prices or industry-specific challenges.
The Thursday rebound followed a challenging Wednesday for the NGX, which saw a N48 billion decline in market capitalization. The All-Share Index had dipped by 0.07% to close at 106,090.38 points, reflecting a week-on-week loss of 0.33% and a four-week decline of 1.61%. Despite this downturn, the market maintained a year-to-date gain of 3.07%, highlighting the resilience of the Nigerian stock market in the face of short-term volatility. The Wednesday decline underscores the inherent fluctuations in stock markets, influenced by a confluence of factors such as investor sentiment, economic indicators, and global market trends. The subsequent rebound on Thursday indicates a degree of market correction and renewed investor confidence, suggesting a potential for continued positive momentum in the near term, although broader market trends and external factors will continue to play a significant role in shaping the market’s trajectory.
