Stock market rebounds, investors gain N4.57trn

Investors on the Nigerian Exchange Limited gained N4.57trn last week as the stock market rebounded from the N1.9trn loss recorded in the previous week.

The recovery came amid the ongoing N2.2trn Initial Public Offering of Dangote Petroleum Refinery, with renewed buying interest in selected equities pushing the market’s key indicators higher.

NGX market capitalisation rose to N162.16trn from N157.59trn, representing a weekly increase of N4.57trn.

The NGX All-Share Index also climbed to 249,804.56 points from 243,052.74 points.

Trading activity increased in value but declined in volume. Investors exchanged 3.25 billion shares valued at N237.99bn in 287,919 deals, compared with 3.65 billion shares worth N130.15bn traded in 244,777 deals the previous week.

The Financial Services Industry dominated trading by volume, accounting for 2.58 billion shares valued at N97.21bn in 138,900 deals. It contributed 79.43 per cent of total equity turnover volume and 40.85 per cent of turnover value.

The Services Industry followed with 131.10 million shares worth N2.73bn in 15,084 deals, while the ICT Industry recorded 114.62 million shares valued at N21.54bn in 29,152 deals.

Fidelity Bank, Sterling Financial Holdings Company and Mutual Benefits Assurance accounted for 1.23 billion shares worth N15.94bn in 7,796 deals, representing 37.83 per cent of total equity turnover volume and 6.70 per cent of its value.

Analysts at InvestData Consulting Limited attributed the recovery to improved market activity following the weakness recorded earlier in the month.

“The improvement in market activity came as the NGX continued to recover from the weakness recorded earlier in the month,” the analysts said.

They, however, noted that investors would be watching whether the rebound develops into a sustained recovery or gives way to renewed profit-taking around key technical levels.

According to the analysts, the market’s short-term recovery remained intact as the All-Share Index approached the 250,000-point resistance level.

They said sustained buying in large-capitalised stocks could push the index higher, while concentration of buying in only a few stocks could limit the broader market’s ability to maintain the recovery.