Nigerian stock market gains N96bn as key stocks rebound

Nigerian investors gained N96bn on Wednesday, recovering from a previous loss, as shares of International Energy Insurance and JohnHolt rose.

Investors on the Nigerian Exchange Limited (NGX) gained N96 billion in value at the close of trading on Wednesday, reversing a prior N68 billion loss.

The gains were largely driven by appreciation in shares of International Energy Insurance Plc, JohnHolt, and Eunisell, which contributed to a 0.16% rise in the local bourse’s market capitalisation, settling it at N59.03 trillion. The All Share Index (ASI) also rose by 0.16% to 97,418.83 points.

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Sectoral performance on the NGX was positive, with increases in banking, consumer goods, and industrial sectors by 1.38%, 0.38%, and 0.01% respectively.

However, the insurance sector saw a 0.58% decline. Market sentiment remained upbeat, as 30 stocks recorded gains while 19 declined.

Leading Wednesday’s gainers was International Energy Insurance, whose shares rose by 10% to N1.32. JohnHolt followed closely, increasing by 9.98% to close at N6.39.

Eunisell Interlinked saw a 9.88% rise to N10.90, while Thomas Wyatt and UPL also showed gains of 9.71% and 9.09%, closing at N1.92 and N0.30 respectively.

On the other hand, insurance firms dominated the decliners. Regency Alliance Assurance Plc dropped 10% to N0.45, Daar Communication decreased by 7.46% to N0.62, and Sovereign Insurance saw a 6.35% drop to N0.59.

Universal Insurance and NEM Insurance each declined by 5.88%, with NEM closing at N8 per unit.

Wednesday’s trading activities were slightly muted compared to Tuesday, with deals, volumes, and values down by 17.52%, 27.53%, and 16.53%, respectively. Overall, 247.01 million shares changed hands across 8,305 transactions, amounting to N7.51 billion.

The financial services sector dominated trading, with AccessCorp leading in volume with 40 million shares valued at N979.6 million across 490 trades.

United Bank for Africa followed with 23,738,655 units worth N761.21 million, while Fidelity Bank, United Capital, and Guaranty Trust Holding Company Plc also saw high trading volumes.

Newly listed Aradel led the value chart with 3,321,734 shares valued at N1.68 billion across 810 deals.

The market had ended in the red zone on Tuesday due to declines in major stocks, including VFD Group (-10%), Oando Plc (-9.42%), and Dangote Sugar (-4.83%), which contributed to a N68 billion loss.

However, Wednesday’s rebound reflects investor confidence and a positive market outlook on the NGX.