Stock Market storms back, Investors scoop N310bn in one day

By Taiye Olayemi

The Nigerian Stock Market closed positive on Wednesday, recovering earlier losses as market capitalisation added N310 billion, buoyed by renewed investor interest in select equities.

Data from the Stock exchange showed that the market capitalisation rose from N89.555 trillion to N89.865 trillion, representing a 0.35 per cent appreciation.

Likewise, the All-Share Index (ASI) climbed by 489.45 points to settle at 142,036.23, compared with 141,546.78 on Wednesday.

Analysts attributed the rebound to bargain hunting in mid and large-cap stocks such as Chellaram, Austin Laz, The Initiates, Sovereign Trust Insurance, Aradel Holdings, among others.

Despite the gain, stock market breadth remained negative, as 32 equities declined against 28 advancers.

On the losers’ chart, Guinea Insurance fell by 9.70 per cent to close at N1.49 per share, followed by Cornerstone Insurance, which shed 8.68 per cent to N6.52. Legend Internet dipped 7.27 per cent to N5.10, Deap Capital Management declined 7.06 per cent to N1.58, while Thomas Wyatt Nigeria lost 6.49 per cent to finish at N2.45.

Conversely, Chellaram topped the gainers’ table, appreciating 9.77 per cent to N14.60 per share. Austin Laz advanced 9.67 per cent to N2.95, while The Initiates rose 8.08 per cent to N12.97. Similarly, Sovereign Trust Insurance gained 7.37 per cent to N3.06, and Aradel Holdings climbed 6.97 per cent to N583 per share.

Trading activity showed mixed trends, with a decline in the number of deals but higher turnover in both value and volume.

Investors exchanged 1 billion shares worth N24.7 billion in 23,281 deals, compared with 414.9 million shares valued at N12.95 billion in 25,386 deals recorded previously.

Abbey Mortgage Bank emerged as the most traded stock by volume, accounting for 401.1 million shares worth N2.7 billion.

It was followed by Fidelity Bank, which recorded 254.8 million shares worth N5.3 billion, while United Bank for Africa (UBA) transacted 23.2 million shares valued at N1.1 billion. Others included FirstHoldCo, which sold 22.5 million shares worth N699.6 million, and Access Corporation, which traded 17.5 million shares valued at N473.9 million.

The rebound, according to market observers, underscores investors’ confidence in fundamentally sound equities despite prevailing economic headwinds. (NAN)