Equities Market Rebounds as Investors Gain N2.59tn

The Nigerian equities market staged a strong rebound on Tuesday, recovering from previous losses as investors recorded a substantial gain of N2.59 trillion in market capitalization. The turnaround marked a renewed wave of optimism among market participants, driven by bargain hunting in high-cap stocks and positive sentiment across major sectors of the Nigerian Exchange (NGX).

Data from the NGX showed that the market capitalization, which opened at N56.87 trillion, closed higher at N59.46 trillion, reflecting a 4.56 percent appreciation. The All-Share Index (ASI) also rose by 4.56 percent, climbing from 100,530.04 points to 105,114.78 points, underscoring a broad-based recovery after the bourse suffered a significant downturn in recent sessions.

Market analysts attributed the rally to renewed investor confidence in blue-chip stocks such as Dangote Cement, MTN Nigeria, BUA Cement, and Airtel Africa, which led the rebound following consecutive days of selloffs. The improved performance was also linked to investors’ strategic repositioning ahead of expected corporate earnings and dividends, as well as stronger macroeconomic outlooks for the final quarter of the year.

The Head of Research at FSL Securities, Victor Chiazor, explained that the market’s performance was primarily driven by value hunters who took advantage of the previous week’s price corrections. “After the steep decline seen in the market, investors have begun to re-enter positions, particularly in large-cap counters, ahead of upcoming earnings and dividend announcements. The current rebound indicates confidence in the long-term fundamentals of the market,” he stated.

Similarly, market sentiment was bolstered by the government’s recent economic reforms and the Central Bank of Nigeria’s renewed focus on stabilizing the naira and tackling inflation. Investors also responded positively to improved liquidity in the foreign exchange market and ongoing efforts to attract foreign portfolio investments into the country’s capital market.

Trading activity showed significant improvement, with total turnover surging as both volume and value of traded equities rose sharply. According to NGX data, investors exchanged over 820 million shares valued at N13.5 billion in 9,024 deals, compared to 554 million shares worth N7.8 billion in the previous session. This uptick in trading activity further reflects growing investor participation and renewed market momentum.

Among the top gainers were Dangote Cement, BUA Foods, Seplat Energy, and Zenith Bank, which collectively lifted the market indices. Dangote Cement gained over 9 percent, extending its recovery from earlier losses, while Airtel Africa and MTN Nigeria saw notable rebounds on improved investor sentiment. On the flip side, only a few medium and small-cap stocks recorded marginal losses, indicating that the rally was largely market-wide.

Financial analysts from Cordros Research observed that the recovery may sustain if macroeconomic indicators continue to show improvement and investors maintain confidence in fiscal and monetary reforms. They noted that the current valuation levels remain attractive for long-term investors seeking exposure to Africa’s largest economy. “The correction phase appears to have provided a healthy entry point for both domestic and foreign investors,” the report added.

The banking and industrial goods sectors were among the top contributors to the market’s rebound. The Banking Index gained over 6 percent, buoyed by renewed demand in tier-one banks such as Zenith Bank, GTCO, and Access Holdings. The Industrial Index also climbed sharply, driven by gains in cement manufacturing giants, while the Oil & Gas sector saw modest growth on the back of price appreciation in Seplat Energy and Oando.

The renewed activity comes amid heightened expectations surrounding Nigeria’s economic trajectory. Analysts believe that the government’s continued commitment to implementing structural reforms, coupled with improving global oil prices, could strengthen corporate earnings in the medium term. Additionally, the anticipated inflow of foreign capital and improved liquidity conditions are expected to support market stability going forward.

Despite the impressive rebound, experts cautioned investors to remain mindful of market volatility and potential macroeconomic headwinds, particularly inflation and foreign exchange pressures. Nonetheless, they expressed optimism that Nigeria’s equity market remains fundamentally strong and offers significant long-term value.

An investment analyst at Meristem Securities, Mrs. Bimpe Adeyemi, remarked that the market’s sharp recovery demonstrates investors’ confidence in the resilience of Nigeria’s listed companies. “The rebound shows that investors are willing to take positions in fundamentally sound stocks with strong earnings potential. This development could set the tone for a positive performance in the coming weeks,” she said.

The market breadth — a measure of investor sentiment — closed positive, with 45 gainers against 9 losers, further reflecting the dominance of buying interest. Most large-cap stocks led the rally, signaling that institutional investors were largely behind the day’s performance.

With Tuesday’s rebound, year-to-date return on the NGX All-Share Index improved to 41.2 percent, reaffirming the resilience of the Nigerian equities market amid global and domestic challenges. Market operators say the performance underscores investors’ continued confidence in Nigeria’s capital market as a viable investment destination.

In summary, the N2.59 trillion gain on the Nigerian Exchange marks one of the largest single-day recoveries in recent months, signaling renewed investor optimism and improved market sentiment. As analysts anticipate sustained stability in the coming sessions, the focus now shifts to the next wave of corporate earnings and macroeconomic data that will shape investor decisions through the year’s end.