NGX rebounds as investors gain N411bn, All-Share Index up 0.26%

Nigerian stocks bounced back on Tuesday, with investors gaining about N411bn in value as buying interest returned to the market after the previous day's losses.

The Nigerian Exchange Limited (NGX) All-Share Index rose 0.26 per cent, or 632.79 points, to close at 245,911.13 points. Market capitalisation of listed equities climbed to N159.67tn.

The rebound pushed the market's year-to-date return to 58.03 per cent, according to ThisDay and Leadership. That figure matters to anyone with a pension or mutual fund, since local fund managers hold a large share of listed stocks.

Punch put the market value gain at N410.86bn, while ThisDay and Leadership reported N411bn. The difference is rounding.

What drove the gains

Buying was concentrated in large and mid-sized companies. HBM Nigeria rose 6.76 per cent to N379.00, NASCON Allied Industries gained 7.31 per cent to N183.50, and Unilever Nigeria added 5.83 per cent to N109.00. Custodian Investment and ABC Transport were also among the stocks that lifted the market.

Austin Laz & Company led the gainers, up 9.97 per cent to N3.53. ABC Transport followed with a 9.92 per cent rise to N6.65, Cutix gained 9.91 per cent to N2.33, Thomas Wyatt Nigeria rose 9.77 per cent to N2.92, and Caverton Offshore Support Group added 9.76 per cent to N4.50.

Market breadth was positive, with 27 stocks gaining and 21 declining.

On the losing side, Livestock Feeds fell 9.76 per cent to N17.10, Guinea Insurance dropped 7.78 per cent to 83 kobo, and NPF Microfinance Bank lost 5.75 per cent to N4.10. Mutual Benefits Assurance and AIICO Insurance also slipped.

Trading was mixed. Total volume eased 0.19 per cent to 348.751 million shares worth N25.877bn in 32,639 deals, according to ThisDay and Leadership. Punch reported 348.69 million shares across 32,588 deals.

United Bank for Africa led activity with 48.141 million shares worth N2.118bn. FCMB Group traded 30.115 million shares, Zenith Bank 21.009 million shares, GTCO 16.065 million shares and Dangote Sugar Refinery 9.272 million shares.

Punch noted that trading took place with the Central Bank of Nigeria holding the Monetary Policy Rate at 23.00 per cent.

What happens next

Analysts at Cowry Assets Management Limited said continued bargain-hunting could support further gains, though intermittent profit-taking may slow the rally, according to ThisDay and Leadership.

For ordinary Nigerians, the market's direction is a signal on how fund managers are pricing banks and manufacturers, which in turn affects pension savings and the cost of raising capital for businesses.