Nigerian equities rebound with ₦3.2trn gain, as Banking sector records losses

The Nigerian capital market staged a robust recovery during the latest trading session, with the total market capitalization advancing by ₦3.2 trillion.

The benchmark All-Share Index (ASI) surged by 2.24%, pushing the year-to-date return to an impressive 46.90% and signaling continued investor confidence in the nation’s industrial and energy sectors.

Trading metrics revealed a significant uptick in market participation, as total volume surged by over 41% to nearly 957 million shares.

Transaction values mirrored this intensity, rising by 59.57% to a staggering ₦70.57 billion.

Despite the index’s upward movement, internal market breadth remained fragile, closing with 49 decliners against 44 gainers.

The Industrial sector emerged as the session’s standout performer, gaining 4.86%, closely followed by the Oil & Gas sector, which climbed 4.66%.

In contrast, the Banking sector, the traditional driver of market volume contracted by 0.98%. Individual performance charts showed IMG and WAPCO leading the gainers, while major players like UBA faced downward pressure, topping the losers’ list alongside TRANSEXPR.

Liquidity in the money market also saw a marked improvement, rising nearly 13% to ₦4.52 trillion.

This influx of cash pushed the Overnight Rate down slightly to 22.15%.

However, the FGN bond market remained largely stagnant, with average yields edging up to 16.08% amid bearish sentiment at the short end of the curve.

The Nigerian Eurobond market faced headwinds from a volatile US market and rising geopolitical tensions. A stall in US-Iran negotiations contributed to a 3% rise in the VIX (volatility index), pushing overall average yields to 6.88%.