Investors gain N481bn as NGX rebounds on earnings optimism

The Nigerian Exchange (NGX) reversed Monday’s losses on Tuesday as renewed buying interest across insurance, industrial and consumer goods stocks lifted investors’ wealth by ₦481.18 billion, amid growing expectations that the ongoing release of half-year corporate earnings will sustain market momentum.

The benchmark NGX All-Share Index rose by 0.30 per cent to close at 247,984.55 basis points, while market capitalisation increased by the same margin to ₦159.99 trillion, pushing the market’s year-to-date return to 59.36 per cent.

The recovery was driven by strong gains in key stocks including HBM Holdings, Dangote Sugar Refinery, Transnational Corporation, Consolidated Hallmark Holdings, Trans-Nationwide Express, and Guinea Insurance, which offset declines recorded by Mansard Insurance, ABC Transport, Jaiz Bank, Meyer Plc, and Mecure Industries.

Market sentiment remained firmly positive as gainers outnumbered losers by about 1.5 to one. Thirty-six stocks appreciated during the session, led by Lasaco Assurance, Linkage Assurance, Trans-Nationwide Express, SUNU Assurances Nigeria, and Consolidated Hallmark Holdings. On the losers’ chart were Meyer Plc, Mecure Industries, ABC Transport, C&I Leasing, Jaiz Bank, and Mansard Insurance.

Sector performance was broadly upbeat, with the Insurance Index posting the strongest gain of 2.33 per cent. The Industrial Goods Index advanced 1.16 per cent, while the Consumer Goods, Banking, and Oil and Gas indices also closed in positive territory. The Commodity Index ended the session unchanged.

Trading activity, however, painted a mixed picture. Total traded volume increased to 676.92 million shares, although the value of transactions fell sharply by 36.32 per cent to ₦36.43 billion, while the number of deals declined to 55,412.

Access Holdings Plc emerged as the most actively traded stock by volume, accounting for 87.54 million shares, while HBM Holdings dominated the value chart with transactions worth ₦6.83 billion.

ALSO READ: ‘Wicked witch’, woman who made husband swear for infidelity celebrates mother-in-law’s death

The rebound follows a weak start to the week, when profit-taking in several large-cap stocks dragged the market lower. Tuesday’s recovery suggests investors are returning to fundamentally strong counters ahead of a wave of half-year financial results expected from listed companies in the coming weeks.

Analysts said the improving earnings season is likely to remain the key catalyst for market direction, with investors expected to continue positioning in companies anticipated to deliver robust interim results and attractive dividend prospects.

They noted that while trading activity remains selective, positive corporate earnings and resilient investor appetite could help sustain the market’s bullish trajectory in the near term, provided macroeconomic conditions remain supportive.