Equities Reverse Losses As Market Capitalisation Rises By N71bn

The Nigerian equities market reversed its recent losses on Wednesday, with investors gaining N71 billion as renewed buying interest in blue-chip stocks, led by Nestle Nigeria Plc, lifted market capitalisation higher despite a broadly negative market breadth.

At the close of trading, the Nigerian Exchange (NGX) All-Share Index (ASI) rose by 109.41 points, representing a 0.04 per cent increase to settle at 244,912.24 points, while the overall market capitalisation appreciated by N71 billion to N158.087 trillion.

The recovery was driven by gains in large and medium-capitalised stocks, including Nestle Nigeria, First Holdco, AVA Capital, VFD Group and FCMB Group, helping the market rebound from recent declines.

Market analysts at Cowry Assets Management Limited expressed optimism that the positive momentum could be sustained, although intermittent profit-taking may moderate the pace of gains.

The firm said, “The market is expected to sustain its bullish trend as investor sentiment tilts increasingly positive, though residual profit-taking activity could temper the pace of any recovery.”

Despite the market’s positive close, investor sentiment remained cautious as 27 stocks declined, outweighing the 20 gainers recorded during the session.

Linkage Assurance topped the gainers’ chart with a 9.94 per cent appreciation to close at N1.77 per share. It was followed by AVA Capital, which gained 9.55 per cent to close at N10.90, while Fortis Global Insurance advanced by 7.69 per cent to N2.80 per share.

Other notable gainers included McNichols, which rose 7.34 per cent to N5.85, and Wapic Insurance, which appreciated 5.51 per cent to close at N2.49 per share.

On the losers’ table, Honeywell Flour Mills and PZ Cussons Nigeria shed 9.94 per cent each to close at N16.30 and N74.75 respectively. Zichis Agro Allied Industries declined by 9.74 per cent to N20.76 per share.

Similarly, Learn Africa fell 9.62 per cent to N9.40, while Neimeth International Pharmaceuticals dropped 8.33 per cent to close at N8.25 per share.

Trading activity weakened during the session, with the total volume traded declining by 47.3 per cent to 824.06 million shares valued at N25.47 billion, exchanged in 48,114 deals.

FCMB Group emerged as the most actively traded stock by volume, accounting for 358.395 million shares worth N3.948 billion. It was followed by Chams Holding Company with 33.923 million shares valued at N146.721 million, while Access Holdings traded 25.332 million shares worth N661.210 million.

Other heavily traded equities included First Holdco, which recorded 21.911 million shares valued at N2.780 billion, and Linkage Assurance, which traded 18.437 million shares worth N31.539 million.