Investors Gain N1.18tn on Oil, Insurance Boost
The Nigerian Exchange closed on a positive note on Wednesday, as buying interest in insurance and oil and gas stocks drove a broad-based rally, resulting in a market capitalisation gain of N1.18tn, the largest single-day rise recorded so far this week.
At the close of trading, the All-Share Index surged by 2,246.00 points, representing a 1.95 per cent increase to close at 117,156.16 basis points, while the market capitalisation rose from N72.5tn to N73.7tn.
The bullish momentum was largely fuelled by gains in heavyweight stocks like NEM Insurance, Seplat Energy, Thomas Wyatt Nigeria, and Linkage Assurance, with the insurance and oil and gas sectors posting strong index performances.
According to data from the NGX, NEM Insurance led the gainers’ chart with a 10 per cent increase, closing at N16.50 per share, followed closely by Seplat Energy, which appreciated by 9.78 per cent to close at N5,450.00 per share.
Thomas Wyatt Nigeria and Linkage Assurance also posted impressive gains of 9.73 per cent and 9.56 per cent, respectively.
On the sectoral front, the Oil & Gas Index recorded the highest gain, rising by 7.49 per cent, followed by the Premium Index, which appreciated by 3.52 per cent.
The Banking Index gained 3.25 per cent, while the Insurance Index rose by 2.02 per cent.
In total, 130 listed equities participated in the day’s trading, with 37 gainers and 31 losers, reflecting a largely positive market sentiment.
On the flip side, Eterna Plc topped the losers’ chart with a 10 per cent drop to close at N38.70 per share, followed by Secure Electronic Technology (-9.68 per cent), Legend Internet (-9.66 per cent), and FTN Cocoa Processors (-6.07 per cent).
In terms of volume, Zenith Bank recorded the highest number of shares traded with 150 million units, followed by Access Holdings with 48.6 million shares, United Bank for Africa with 43 million shares, and Nigerian Breweries with 37.7 million shares.
Despite a 19 per cent decline in total volume traded compared to the previous session, market turnover improved by 1 per cent, reaching N26.01bn, though the number of deals declined by 15 per cent to 19,727.
The performance of the broader market reflects a one-week gain of 2.75 per cent, a four-week gain of 6.79 per cent, and a year-to-date return of 13.83 per cent, reinforcing the market’s resilience despite macroeconomic headwinds.
Analysts at Afrinvest anticipate the market will close on a positive note on Thursday, supported by improved investor confidence and renewed bargain hunting in key sectors.
“Investor sentiment has picked up significantly, and we expect this optimism to drive buying activities across major sectors, leading to a positive close,” the statement read partly.
NGX recorded a loss of N183bn at the close of trading on Tuesday, as bearish sentiments continued to weigh on key market indicators, dragging several blue-chip stocks into negative territory.
