UACN, Africa Prudential, Ikeja Hotel, others Drive Equities market Loss By 0.20%

Nigerian Equity Market Recovers With N144bn Gain

1 month ago
1 min read

The Nigerian equity market bounced back from Tuesday’s loss with a significant gain of N144 billion on Thursday.

The recovery was driven by notable performances from Nigerian Breweries, Unity Bank, NEM Insurance, and 27 other companies.

After the Democracy Day holiday on Wednesday, the market closed with a capitalization increase and the All Share Index rising by 0.2 percent to settle at N56.47 trillion and 99,832.25 points, respectively. Despite the overall positive performance, the volume and value of transactions saw a decrease of 40.80 percent and 47.72 percent, respectively, with 502.60 million units exchanged valued at N8.65 billion. However, there was a noticeable increase in the number of deals, which rose by 20 percent to 9,686.

Bulls dominated the trading session, with the exchange recording 30 gainers against 18 losers. The gainers’ chart was led by Nigerian Breweries, which appreciated by 10 percent to close at N31.90. Unity Bank saw a 9.91 percent rise to end at N1.22, while NEM Insurance gained 9.77 percent, finishing at N9.55.

READ ALSO: Nigerian Equity Market Sees N92.32bn Loss Amid Mixed Performance

Chukwu Emeka, a market analyst, commented on the day’s trading: “Thursday’s session was a testament to investor confidence. The notable performances from top gainers like Nigerian Breweries and Unity Bank have shown resilience in the market.”

Conversely, Ecobank Transnational led the losers with a 9.92 percent drop to close at N21.35. Daar Communications followed, shedding 8.77 percent to close at N0.52, and C&I Leasing fell by 7.14 percent, ending the day at N2.60.

The banking sector witnessed substantial trading volumes, with Zenith Bank leading at 71.2 million shares. AIICO Insurance followed with 67.3 million shares, and Access Holdings traded 58.5 million shares.

Other indices that showed appreciation included the insurance, banking, pension, and consumer goods sectors, indicating a broad-based recovery. The bounce-back came after a loss of N92.32 billion on Tuesday, mainly attributed to declines in the stocks of National Salt Company, Thomas Wyatt Nigeria, May & Baker Nigeria, and 16 others.

“Investors are still cautious but optimistic,” said Olu Jacobs, a financial analyst. “The mixed performances are a reflection of the market’s adjustment to economic realities, but the overall trend is positive.”

The Central Bank of Nigeria (CBN) has reassured the safety of depositors’ funds, which has played a role in bolstering market confidence. Additionally, Unity Bank has projected a profit of N5.2 billion for the third quarter, further adding to the optimistic outlook.

Despite the lower activity levels in terms of volume and value, the increased number of deals and the broad-based sector gains indicate a positive sentiment in the market. Investors are looking forward to continued stability and growth as the Nigerian equity market navigates through the economic landscape.

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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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