Nigeria’s stock market rebounds to positive territory on Thursday as renewed buying interest in major equities lifted market capitalisation and boosted investor confidence after two consecutive days of losses.
Market analysts said the rebound reflects improved sentiment among investors who are increasingly positioning in fundamentally strong stocks amid encouraging corporate earnings reports and a gradually stabilising macroeconomic environment.
The trading session ended with a significant increase in market value, highlighting a renewed appetite for equities among institutional and retail investors on the trading floor of the Nigerian Exchange Limited.
Equities market rebounds with N649bn gain
The equities market rebounds with N649bn gain, reversing the bearish momentum recorded earlier in the week as investors resumed selective accumulation of key stocks across multiple sectors of the market.
At the close of trading, the benchmark All-Share Index (ASI) climbed by 1,010.22 points, representing a 0.52 per cent increase to settle at 196,908.76 points.
Consequently, the total market capitalisation rose by N649bn, closing the day at N126.399tn, reflecting the improved valuation of listed companies.
Market participants attributed the rebound to increased buying interest in several mid-cap and large-cap companies that recorded strong price appreciation during the session.
Among the notable gainers were Transcorp Hotels, BUA Cement, Fidson Healthcare, Chemical and Allied Products, and Guinness Nigeria, whose share prices rose significantly to drive the market’s upward movement.
Mixed trading pattern despite overall market gain
Despite the overall positive close, market breadth indicated a balanced trading pattern as investors took varied positions across different equities.
Out of the 132 stocks traded, 30 recorded gains, 30 declined, while 62 equities closed flat, highlighting a cautious but optimistic investment climate.
Leading the gainers’ chart was FTN Cocoa Processors, which surged by 10 per cent to close at N6.27 per share, making it the best-performing stock of the day.
Closely following was Fidson Healthcare, whose share price rose by 9.97 per cent to close at N105.35.
Other notable performers included DEAP Capital Management & Trust, which appreciated by 9.89 per cent, closing at N7.00 per share, while Caverton Offshore Support Group advanced by 9.40 per cent to finish at N6.40.
Similarly, Livestock Feeds recorded a 9.30 per cent gain, closing the trading session at N7.05 per share.
Decliners weigh on some sectors
While several stocks advanced, others recorded price declines as profit-taking activities affected some counters.
Eterna Plc and Omatek Ventures led the losers’ chart after both stocks dropped by 10 per cent to close at N42.30 and N2.52, respectively.
Also posting losses was SCOA Nigeria, which declined by 9.94 per cent to close at N22.65 per share.
Meanwhile, Fortis Global Insurance fell by 9.24 per cent to close at N1.08, while Sovereign Trust Insurance dropped 9.09 per cent to end trading at N2.10 per share.
Market analysts explained that such price corrections are typical during recovery phases as investors rebalance portfolios.
Trading activity declines
Despite the market’s positive performance, trading activity slowed compared to the previous session.
The total volume of shares traded declined by 25.84 per cent, with investors exchanging 549.78 million shares valued at N44.736bn across 55,465 deals.
Among the most actively traded equities was Fortis Global Insurance, which topped the activity chart with 32.18 million shares valued at N34.77m.
Financial sector heavyweights also recorded strong participation from investors.
Access Holdings traded 28.12 million shares worth N700.99m, while First Holdco Plc recorded 27.72 million shares valued at N1.385bn.
Similarly, Zenith Bank saw 27.48 million shares exchanged worth N2.559bn, reflecting sustained interest in banking stocks.
However, one of the largest value trades came from Dangote Cement, where 26.89 million shares worth N20.671bn changed hands during the session.
Investor confidence gradually improving
Market observers believe the rebound reflects improved investor confidence in the Nigerian equities market.
According to analysts at Imperial Asset Managers Limited, the trading session indicates renewed interest in fundamentally strong stocks, especially as companies continue to release robust financial results for the 2025 full-year earnings season.
They noted that investors are selectively accumulating stocks with strong fundamentals and stable growth prospects.
The analysts also pointed to improving macroeconomic conditions, including stabilising inflation trends and stronger foreign exchange management, as factors encouraging investors to return to the market.
Outlook for the Nigerian equities market
Financial experts say the Nigerian equities market may maintain a positive trajectory in the near term if corporate earnings remain strong and economic stability continues.
However, they caution that investors will likely remain selective in their investment choices, focusing on companies with solid financial performance and sustainable growth strategies.
Analysts also expect increased activity in banking, consumer goods and industrial sectors as investors rebalance their portfolios in response to evolving economic conditions.
While market volatility may persist due to global economic uncertainties, the latest rebound suggests that investor sentiment toward Nigerian equities is gradually improving.
