NGX reclaims N1.9trn as stocks rebound, ASI surges 1.20%

Nigeria’s equity market regained N1.9 trillion in market value on Monday as renewed buying in banking and telecom stocks lifted the NGX All-Share Index (ASI) by 1.20 per cent to 244,199.39 points, reversing part of the recent sell-off.

Market capitalisation rose 1.23 per cent to N157.74 trillion, while the benchmark’s year-to-date return climbed to 56.93 per cent, from 55.06 per cent at the end of the previous week.

The rebound was broad-based, with 44 stocks advancing against 17 decliners, producing a positive market breadth of 2.59x and signalling a decisive return of buying interest after several sessions of pressure.

Banking stocks were among the strongest drivers of the recovery. AccessCorp gained 8.81 per cent, GTCO rose 3.10 per cent and UBA advanced 3.16 per cent, helping offset losses in BUA Cement, JaizBank and Abbey Mortgage Bank.

AbbeyBank fell 9.41 per cent, making it the worst-performing stock of the session, while Omatek gained 10 per cent to lead the advancers.

Investor activity also strengthened significantly.

Total volume traded increased 4.97 per cent to 606.19 million units, while transaction value jumped 38.17 per cent to N38.70 billion, indicating that the market’s recovery was accompanied by substantially higher capital turnover.

AccessCorp dominated trading volume with 126.54 million shares, while MTN Nigeria led by value, with transactions worth N5.72 billion, after its share price gained 4.26 per cent.

The rebound comes after the NGX had entered a correction phase following its strong rally earlier in August, which saw the ASI climb above 248,000 points before a prolonged bout of profit-taking.

Monday’s performance suggests that investors are beginning to re-enter selected large-cap counters as valuations adjust and market participants reposition for the next phase of the equities cycle.

The recovery was mirrored on the NASD over-the-counter market, where the NASD Securities Index gained 1.67 per cent to 4,306.78 points and market capitalisation rose to N2.58 trillion.

Its year-to-date return improved to 21.53 per cent, while transaction value surged 185.52 per cent to N51.98 million, although only 29 trades were executed.

SDFCWAMCO was the strongest advancer on the OTC market, rising 6.18 per cent, while SDGEFLUID fell 0.54 per cent.

The positive domestic market sentiment also coincided with a stronger naira. The Nigerian Foreign Exchange Market appreciated 0.33 per cent to N1,332.94/$, continuing the currency’s recent gains.

Global oil markets, however, provided a more challenging backdrop.

Brent crude rose 3.53 per cent to $90.62 a barrel, while West Texas Intermediate gained 4.01 per cent to $85.60, as renewed military exchanges between the United States and Iran increased fears of supply disruption through the Strait of Hormuz.

The international oil market remains particularly important for Nigeria because sustained crude-price gains can strengthen foreign-exchange inflows and government revenues, although prolonged geopolitical instability could also raise imported energy and financing risks.

The latest NGX rebound therefore comes against a broadly supportive domestic backdrop of a firmer naira and higher oil prices.

For investors, the key development is the combination of N1.9 trillion added to market capitalisation, N38.70 billion in turnover and 44 gainers.

The figures suggest that Monday’s rally was not simply a narrow recovery in the index but a broader improvement in market participation.

The immediate test will be whether the renewed buying is strong enough to push the ASI back towards its August highs or whether investors resume profit-taking after the initial rebound.