NGX Trading Rebounds as Investors Gain N94.47bn

Bullish trading resurfaced on the Nigerian Exchange Limited on Tuesday, breaking a bearish run that had entered its sixth day as of Monday.

At the close of trading, the All-Share Index and Market Capitalisation rose by 0.10 per cent to 143,763.13 and N91.44tn, respectively, resulting in a gain of N94.47bn for investors.

Analysts maintained that sustained profit-taking had continued to pressure the overall performance of the local bourse, leading to bearish trading. The positive turn in the market also coincided with the decision of the Monetary Policy Committee of the Central Bank of Nigeria to hold the benchmark rate at 27 per cent at the end of its last meeting of the year.

The MPC also retained the Cash Reserve Ratio at 45 per cent for commercial banks and 16 per cent for merchant banks, and the 75 per cent CRR on non-TSA public sector deposits. The Liquidity Ratio was retained at 30 per cent, while the Standing Facilities Corridor was adjusted to +50 / -450 basis points around the MPR.

Meanwhile, market sentiment on the NGX turned positive, as 26 advancers outweighed 20 decliners, yielding a favourable 1.3x breadth ratio. The stocks of NCR, Ikeja Hotel, Prestige Assurance, Eunisel, and Sterling Financial Holding Company led the gainers, while Caverton, Union Dicon, Sunu Assurance, Lasaco, and Mansard topped the losers’ list.

Sectoral performance was mixed, with banking posting the strongest gain at 0.56 per cent, followed by consumer goods (0.01 per cent), while insurance declined by 0.84 per cent. The Oil & Gas, Industrial, and Commodity sectors remained flat.

Despite the uptick in the market, trading activity weakened across all metrics. Volume contracted by 18.62 per cent to 556.15 million shares, transaction values dropped 34.04 per cent to N18.71bn, and deal count fell 18.29 per cent to 19,500.

Analysts at Cowry Asset Management said the downturn in trading activity reflected diminished institutional engagement through reduced block trades and subdued retail participation amid ongoing risk-averse sentiment.