Nigeria’s equities market rebounded on Wednesday following a sluggish start to the new month as investors repositioned portfolios for the second half of the year amid renewed bargain hunting and expectations of improved corporate earnings.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) rose to 120,339.90 points, up from the previous day’s low of 119,741.23 points while the equities market capitalisation increased by ₦378 billion to close at ₦76.179 trillion, compared to ₦75.801 trillion at the prior session.
The year-to-date (YTD) return for the NGX climbed further to +16.92% to reflect sustained positive sentiment despite macroeconomic uncertainties.
Mid-cap stocks led the rally with Ellah Lakes Plc emerging as the top gainer for the day. The agricultural company’s share price advanced by 10% or 84 kobo from ₦8.40 to ₦9.24 per unit. Cutix Plc, an indigenous cable and wire manufacturer, also recorded a 10% gain, increasing from ₦3.60 to ₦3.96. Likewise, International Energy Insurance Plc gained 10%, climbing from ₦1.80 to ₦1.98 at the close of trade.
Other active counters that contributed to the session’s momentum included Royal Exchange Plc, Japaul Gold & Ventures Plc, Wema Bank Plc, and Chams Plc.
The positive sentiment was underpinned by excess liquidity in the financial system and speculative positioning ahead of the release of second-quarter earnings results.
Market activity remained robust, with investors transacting 1.05 billion shares worth ₦12.17 billion in 21,964 deals.
Analysts at United Capital had earlier forecast that the market might continue on an upward trend, supported by strong liquidity conditions and early positioning for companies expected to post foreign exchange gains, cost management resilience, and healthy interim dividend prospects.
“We see the market benefiting from excess liquidity in the financial system. Similarly, investors might start positioning for Q2 earnings season, favouring corporates with FX gains, cost control, clear growth trajectory, and potentials for quality interim dividend payments,” the Lagos-based investment firm said in its weekly note.
Despite global headwinds and local macroeconomic adjustments, local institutional and retail investors have continued to rotate capital into select counters with strong fundamentals, supported by a hunt for inflation-hedging returns.
Market operators expect that as the half-year earnings season gathers momentum in July, buying interest may persist in stocks with solid dividend records and exposure to currency translation gains.
