The stock market witnessed a rebound on Tuesday as the investors gained N80bn. The market capitalisation of equities listed on the floor of the Nigerian Stock Exchange increased from N12.004tn on Monday to N12.084tn on Tuesday, while the All Share Index gained 0.67 per cent to close at 32,406.17 basis points from the 32,190.07bps recorded on Monday.
Analysts at Afrinvest Securities Limited said the rebound witnessed by the market was due to buying interest in bellwether stocks such as Zenith Bank Plc, Guaranty Trust Bank Plc and United Bank for Africa Plc as the year-to-date return improved to 3.1 per cent.
Activity level also strengthened as 361.821 million shares valued at N4.160bn exchanged hands in 4,623 deals, representing a 55.4 per cent and 23.7 per cent increase in volume and value traded, respectively.
The top traded stocks by volume were Transnational Corporation of Nigeria Plc (120.2 million units), Zenith Bank (37.3 million units) and FBN Holdings Plc (31.2 million units), while Dangote Cement Plc (N951.6m), Zenith Bank (N925.5m) and GTB (N778m) led the top traded stocks by value.
Performance across sectors was largely bullish as four of five indices closed on a positive note. The banking sector, which was the biggest loser on Monday, became the biggest gainer on Tuesday as it appreciated by three per cent. The oil and gas and consumer goods sectors advanced by 0.7 per cent and 0.3 per cent, respectively.
The insurance sector was the fourth gainer, advancing by 0.2 per cent following investor interest in Custodian Investment Plc and Cornerstone Insurance Plc. On the flip side, the industrial goods index shed 0.2 per cent on account of major sell-offs in Dangote Cement and First Aluminium Nigeria Plc.
Investor sentiment, as measured by market breadth (advance/decline ratio), strengthened to 1.1x from 0.3x recorded on Monday as 16 stocks advanced against 14 decliners. The top five gainers were Japaul Oil & Maritime Services Plc, Sovereign Trust Insurance Plc, Associated Bus Company Plc, Custodian Investment and Academy Press Plc, which saw respective gains of 9.52 per cent, 9.52 per cent, 9.09 per cent, 8.26 per cent and 8.11 per cent.
The top five losers were First Aluminium, Transnational Corporation of Nigeria, Wema Bank Plc, Unity Bank Plc and Union Diagnostic and Clinical Services Plc, whose respective share prices shed 10 per cent, 9.74 per cent, 9.68 per cent, 9.65 per cent and 6.90 per cent.
“Despite today’s rebound in market performance, we advise investors to trade cautiously as we expect sell pressures to return to the market by close of the week – eve of the rescheduled presidential elections,” analysts at Afrinvest said.