The Nigerian Exchange (NGX) bounced back on Tuesday as renewed buying interest across insurance, industrial, and consumer goods stocks added ₦481.18 billion to investors’ wealth. The recovery erased Monday’s losses and strengthened confidence ahead of the release of half-year corporate earnings. Analysts believe the NGX rally could continue if listed companies deliver strong financial results and attractive dividend prospects. The latest gains also reinforced optimism surrounding the NGX rally despite recent market volatility.
The NGX All-Share Index rose by 0.30 per cent to close at 247,984.55 basis points, while market capitalisation increased by the same margin to ₦159.99 trillion. The market’s year-to-date return also improved to 59.36 per cent.
The rebound was driven by gains in HBM Holdings, Dangote Sugar Refinery, Transnational Corporation, Consolidated Hallmark Holdings, Trans-Nationwide Express, and Guinea Insurance, which outweighed losses recorded by Mansard Insurance, ABC Transport, Jaiz Bank, Meyer Plc, and Mecure Industries.
Investor sentiment remained positive as 36 stocks advanced during the trading session, outnumbering losers by about 1.5 to one. Leading the gainers were Lasaco Assurance, Linkage Assurance, Trans-Nationwide Express, SUNU Assurances Nigeria, and Consolidated Hallmark Holdings. On the losing side were Meyer Plc, Mecure Industries, ABC Transport, C&I Leasing, Jaiz Bank, and Mansard Insurance.
Most sectoral indices ended higher, with the Insurance Index recording the strongest gain of 2.33 per cent. The Industrial Goods Index rose 1.16 per cent, while the Consumer Goods, Banking, and Oil and Gas indices also closed in positive territory. The Commodity Index finished the session unchanged.
Trading activity produced mixed results. The total volume traded increased to 676.92 million shares, but the value of transactions fell 36.32 per cent to ₦36.43 billion, while the number of deals dropped to 55,412.
Access Holdings Plc led the market by trading volume with 87.54 million shares, while HBM Holdings recorded the highest value of trades at ₦6.83 billion.
Market analysts said Tuesday’s rebound reflected renewed confidence in fundamentally strong stocks following Monday’s profit-taking. They added that the NGX rally is likely to remain driven by the ongoing earnings season, with investors positioning for companies expected to post solid half-year results and maintain attractive dividend prospects.
Do you think strong half-year earnings will keep the Nigerian stock market on its upward path?
