NGX rebounds as turnover jumps 82% amid renewed investor

Nigeria’s equities market rebounded on Tuesday as stronger investor activity lifted the NGX All-Share Index by 0.41 per cent, with market value rising by about N647 billion as trading value surged 81.66 per cent to N37.28 billion.

The All-Share Index closed at 244,304.51 points, pushing the market’s year-to-date return to 56.99 per cent from 56.35 per cent in the previous session. Market capitalisation also increased 0.41 per cent to N158.40 trillion.

The gains came as buying interest in major stocks outweighed losses across several counters. NGX Group led the advancers with a 9.95 per cent gain, followed by Aradel Holdings, which rose 9.62 per cent, and International Breweries, up 8.50 per cent.

At the other end, ETI fell 10 per cent, while PZ Cussons and Honeywell Flour Mills declined 9.52 per cent and 7.14 per cent, respectively.

Trading activity strengthened significantly during the session. Total volume rose 21.49 per cent to 521.15 million shares, while transaction value jumped from the previous session to N37.28 billion.

Aradel Holdings dominated value turnover, accounting for N6.35 billion in transactions, while MBENEFIT led the volume chart with 39.01 million shares.

Market breadth also improved, with 35 stocks advancing against 28 decliners, producing a positive breadth ratio of 1.30 times. The balance indicates that the session’s gains were relatively broad rather than being driven entirely by a handful of large-cap counters.

The latest advance leaves Nigerian equities among the stronger-performing emerging and frontier markets this year, although the sharp year-to-date rally has also increased the importance of earnings growth and valuation support as investors assess how much further the market can rise.

The positive domestic session came against a mixed macroeconomic backdrop. The naira weakened by 0.21 per cent at the Nigerian Foreign Exchange Market to N1,329.15 per dollar, reflecting continued currency-market volatility.

Oil markets also remained under pressure from supply concerns after Saudi Arabia cancelled some September-loading crude cargoes to European refiners following the closure of the East-West pipeline, adding another layer of uncertainty to an already volatile global energy market.

On the NASD OTC market, the previous session was also positive, with the NASD Securities Index gaining 1.86 per cent to 4,555.42 points. Market capitalisation rose to N2.73 trillion, while the index’s year-to-date return improved to 28.55 per cent.

For the NGX, the combination of higher turnover and positive breadth provides a stronger signal than the 0.41 per cent index gain alone. Investors are putting more money to work, but with the market already up 56.99 per cent this year, the sustainability of the rally will increasingly depend on corporate earnings, liquidity and the direction of interest rates and the naira.