Nigerian Stock Market Recovers Strongly After Steep Decline, Investors Gain N2.59tn

After a sharp 5.01 per cent drop in the All-Share Index (ASI) on Tuesday, the Nigerian Exchange Limited (NGX) rebounded on Wednesday, closing in positive territory for the first time in days.

The ASI rose by 2.88 per cent to 145,403.83 points, while market capitalization climbed to N92.48 trillion, translating to a N2.59 trillion gain for investors. Tuesday’s sell-off, described by some analysts as the worst since 2010, had seen the ASI tumble to 141,327.30 points, with daily investor losses of N4.64 trillion. Only four stocks advanced while 61 declined.

Wednesday’s recovery was largely driven by bargain-hunting in blue-chip stocks, including MTN Nigeria (+9.95%), Aradel (+8.93%), Nigerian Breweries (+10%), and banking counters such as Guaranty Trust Holding Company (+10%) and Zenith Bank (+10%).

Trading activity increased notably, with the volume of stocks traded rising 22.93 per cent to 806.39 million units, valued at N50.79 billion—a 72.77 per cent increase. However, the number of deals fell by 17.08 per cent to 24,509. Market breadth was positive, with 65 gainers outweighing 11 losers. GTCO led in volume with 104.8 million units (13% of total volume), while Aradel topped the value chart at N12.9 billion (25.4% of total value).

Financial services stocks, including Access Corp, Ecobank Transnational Incorporated, GTCO, and AXA Mansard, each hit the daily 10 per cent maximum gain. Consumer and industrial stocks such as Nigerian Breweries, Oando, PZ Cussons, Royal Exchange, Sovereign Trust Insurance, and Coronation Insurance also saw 10 per cent price appreciation. On the downside, Vitafoam, Transcorp Power, and Austin Laz fell by 10 per cent, while Redstar Express and Abbey Mortgage Bank dropped by 9.80 per cent and 9.72 per cent, respectively.

Sectoral performance was broadly bullish, with the banking index surging 7.39 per cent, followed by Insurance (+6.95%), Oil & Gas (+4.11%), Consumer Goods (+2.27%), and Industrial (+0.43%). Only the Commodity sector registered a marginal decline of 0.03 per cent.

Cowry Asset Management Limited noted that Wednesday’s pattern suggested institutional investors were driving the market through large block trades, strategically capitalizing on attractive entry points following Tuesday’s sharp correction.