Nigerian equities rebound as index edges up 0.02%, large-cap buying offsets sell-offs
The Nigerian equities market returned to positive territory on Tuesday, with the benchmark All-Share Index (ASI) rising marginally by 0.02% to close at 254,289.35 points as selective buying in large-cap stocks offset losses in several counters.
The modest recovery was supported by gains in Transcorp Power, Access Holdings, Stanbic IBTC Holdings, Zenith Bank and Fidelity Bank, reflecting renewed investor interest in selected banking and industrial stocks.
Transcorp Power led the gainers, advancing 3.71%, while Access Holdings added 1.89%. Stanbic IBTC Holdings rose 1.17%, Zenith Bank gained 0.78% and Fidelity Bank appreciated 0.43%.
The gains, however, were limited by selling pressure in other stocks. Vitafoam Nigeria recorded the steepest decline, shedding 9.99%, followed by United Bank for Africa (UBA), which fell 2.26%.
United Capital lost 1.49%, while Dangote Sugar Refinery and Honeywell Flour Mills declined 1.48% and 0.63%, respectively.
Despite the narrow movement in the benchmark index, trading activity remained substantial. Investors exchanged 525.43 million shares valued at ₦22.61 billion in 39,078 deals, indicating sustained participation in the market.
Zichis led the volume chart with 127.48 million shares traded, followed by Access Holdings with 42.59 million shares. Chams recorded 25.42 million shares, while VFD Group accounted for 23.24 million shares.
In value terms, Aradel Holdings topped the market with transactions worth ₦2.94 billion. MTN Nigeria followed with ₦2.27 billion, while Zichis recorded ₦2.16 billion and Zenith Bank ₦1.84 billion.
The latest session left the market’s month-to-date return unchanged at 0.00%, while its year-to-date gain stood at 63.41%.
The strong cumulative performance highlights the scale of the rally recorded over the year, even as recent trading has reflected a more selective approach by investors.
The market’s performance also comes against the backdrop of third-quarter corporate earnings releases, which are likely to influence stock selection as investors assess companies’ revenue growth, profitability and balance-sheet strength.
Looking ahead, the market is expected to maintain a cautiously positive bias in the near term, supported by bargain hunting in fundamentally sound stocks and the release of third-quarter results.
However, continued profit-taking in selected large-cap stocks and uncertainty surrounding the political environment ahead of the next election cycle could temper sentiment and limit further gains.
The direction of the market will therefore depend increasingly on company fundamentals and investors’ assessment of the broader economic and political outlook.
