The Nigerian stock market sustained its bullish rally on Tuesday, with investors gaining N3.450 trillion, driven by renewed buying interest in large- and mid-cap stocks.
As a result, market capitalisation rose by 2.27 per cent, from N152.135 trillion to N155.585 trillion. The All-Share Index also advanced by 5,376.70 points, or 2.27 per cent, to close at 242,459.98, up from 237,083.28. Consequently, the year-to-date return strengthened to 55.81 per cent, while market breadth closed positively with 33 gainers and 23 losers.
Airtel Africa and Trans-Nationwide Express led the gainers’ chart by 10 per cent each, closing at N5,801.40 and N2.97 per share respectively. Also, Fidelity Bank gains by 9.97 per cent, settling at N19.85. Thomas Wyatt increased by 9.89 per cent, finishing at N3, and Zichis Agro Allied Industry soared by 9.69 per cent, closing at N29.20 per share.
Conversely, Halldane McCall led the losers’ chart by 9.95 per cent, finishing at N3.53. Mc Nichols trailed by 8.89 per cent, settling at N6.15, while Computer Warehouse Group dropped by 5.65 per cent, ending the session at N40.05 per share. Also, VFD Group dipped by 5.24 per cent, closing at N19 per share, and NPF Microfinance Bank shed by 5.19 per cent, settling at N10.05 per share.
Market activity improved during the trading session, with investors exchanging 518.43 million shares, representing a 5.06 per cent increase in trading volume. The shares were valued at N22.75 billion in 48,495 deals.
Lasaco Assurance emerged as the most-traded stock by volume, with 56.60 million shares exchanged, accounting for 10.92 per cent of the total volume. Aradel led the value chart, with transactions worth N4.20 billion, representing 18.49 per cent of the total value traded.
David Adonri, the vice-president of Highcap Securities, attributed the market’s positive performance to the return of bullish momentum, saying the recent rally suggests the market has found its bottom.
According to him, the change in market direction began last Friday and has continued into the current trading sessions.
“The upward momentum has returned to the market. The market appears to have bottomed out. I think the change in direction started last Friday, and it has continued,” he said.
Mr Adonri, however, noted that while the recovery is expected to be gradual, it is likely to remain steady, reinforcing the view that the market has bottomed out.
“The recovery is going to be slow, but it may be steady. It won’t be a rapid rise, but a gradual and sustained recovery,” he said.