After eight consecutive sessions of profit-taking by investors, the stock market segment of the Nigerian Exchange Limited (NGX) experienced a notable rebound on Tuesday, buoyed by increased demand for shares of FBN Holdings (FBNH) Plc and 16 other listed companies.
The NGX All-Share Index (NGX ASI) recorded a gain of 100.55 basis points or 0.10 percent to close at 99,908.89 basis points. This resulted in a market capitalization increase of N57 billion, bringing the total market capitalization to N56.505 trillion.
The positive performance also elevated the Year-to-Date (YtD) return of the NGX ASI to 33.61 percent.
The previous day had seen a significant decline in the Nigerian stock market, with a loss of N1.11 trillion in market capitalization, marking the largest single-day decline in April and pushing the NGX ASI below the 100,000 basis points mark.
The rebound observed on Tuesday was primarily driven by price appreciation in large and medium-capitalized stocks, including FBNH, Fidelity Bank, Ikeja Hotel, Access Holdings, and Morison Industries.
Market breadth, however, remained negative, with 27 stocks recording losses compared to 17 gainers. Ikeja Hotel emerged as the highest price gainer, rising by 10 percent to close at N7.26 per share. Fidelity Bank followed closely with a gain of 9.88 percent, closing at N8.90 per share, while Academy Press recorded a 9.77 percent increase to close at N1.91 per share.
Morison Industries and Prestige Assurance also experienced notable gains, appreciating by 9.71 percent and 9.26 percent, respectively.
On the flip side, Livestock Feeds led the losers’ chart with a decline of 10 percent, closing at N1.44 per share. International Energy Insurance, CWG, FTN Cocoa Processors, and Africa Prudential also recorded significant declines.
Trading volume decreased by 20.11 percent to 322.656 million units, valued at N5.820 billion, and exchanged in 9,074 deals. United Bank for Africa (UBA) led the activity with 55.013 million shares worth N1.284 billion, followed by Zenith Bank and Access Holdings.
The positive rebound in the stock market signals renewed investor confidence and interest in certain stocks, despite the recent volatility experienced in the market.
