Equity Market Rebounds As Nigerian Stocks Gain N60bn In Value

Equity Market Rises By 0.22% On Bargain Hunting At NGX

4 weeks ago
1 min read

Market Recovery Amid Bargain Hunting

The Nigerian equity market showed resilience on Wednesday, with the All-Share Index (ASI) rising by 0.22% at the close of the trading session on the Nigerian Exchange Limited (NGX). This recovery followed a previous day’s dip, driven largely by bargain hunters seeking opportunities in low-priced stocks with solid fundamentals.

“Investors were actively looking for re-entry points, especially in sectors where price pullbacks had made certain stocks more attractive,” said Tolu Adigun, a market analyst at Futureview, a Lagos-based investment research firm.

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Analysts Expect Mixed Market Performance

Futureview analysts had predicted earlier in the week that the equity market would experience a mixed performance. “The market’s direction will likely depend on selective positioning in fundamentally strong stocks, especially those trading at discounted rates,” Adigun added. He noted that the market sentiment is positive but tempered by the potential impact of ongoing bank rights issues.

Stocks like John Holt, Eunisell Interlinked, and University Press contributed significantly to the day’s gain. John Holt, for instance, climbed from N5.81 to N6.39, marking a 9.98% increase, while Eunisell and University Press saw gains of 9.88% and 9.09%, respectively.

Banking Stocks in Focus

Banking stocks like Access Holdings, UBA, Fidelity Bank, United Capital, and GTCO were among the most actively traded on Wednesday. Meristem analysts remarked that the recent performance of banking stocks has attracted

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substantial attention, particularly from bargain hunters. “These stocks have been key players in the market’s movement, and they offer significant value for investors,” said Bola Shonubi, an analyst at Meristem.

He added, “With such attractive price levels, it’s no surprise that bargain hunting has increased. We anticipate this positive momentum to continue, even if there’s a chance of profit-taking later in the week.”

Market Indices on the Rise

The NGX’s All-Share Index (ASI) and the market’s total capitalisation both saw increases. The ASI moved from 97,260.39 points to 97,477.81 points, while the equities market capitalisation rose from N58.935 trillion to N59.071 trillion. With these gains, the year-to-date (YTD) return now stands at +30.36%.

“Market breadth was also strong today,” said Sade Olowokere, a trader on the NGX floor. “We recorded 30 gainers against 19 losers, a signal that investors are feeling confident, at least in the short term.”

Positive Market Sentiment Despite Caution

While the market shows promise, analysts caution that the week’s trend could still change. Meristem’s research team noted, “Although profit-taking is always a possibility, the market has a reduced sell bias, and we expect the current wave of bargain hunting to support gains.”

As the week progresses, the equity market remains dynamic, driven by investors’ strategic shifts and the pull of fundamentally strong stocks at attractive prices.

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Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.

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