KEY POINTS

• Investors gained ₦328 billion as the Nigerian Exchange rose 0.20% on Thursday.
• The recovery followed two consecutive sessions of losses, with Fidson, Sunu Assurances and Champion Breweries among the top gainers.
• Market capitalisation increased to ₦163.859 trillion, while the year-to-date return rose to 62.18%.
• Trading volume surged to 2.91 billion shares, largely driven by transactions in Livestock Feeds.

MAIN STORY

The Nigerian Exchange (NGX) recovered on Thursday as renewed buying interest lifted market capitalisation by ₦328 billion, reversing losses recorded over the previous two trading sessions.

Market capitalisation increased from ₦163.531 trillion at the opening to ₦163.859 trillion at the close, representing a 0.20% gain.

The All-Share Index also advanced by 505.56 points to 252,366.80, compared with 251,861.24 recorded on Wednesday.

The recovery raised the market’s year-to-date return to 62.18%, while market breadth closed positive, with 26 stocks gaining and 21 declining.

Fidson led the gainers, rising 9.94% to close at ₦91.80 per share. Sunu Assurances followed with a 9.92% increase to ₦2.88, while Champion Breweries gained 9.85% to settle at ₦11.15.

Caverton Offshore Support Group advanced 9.59% to ₦4.00, while Fortis Global Insurance appreciated by 9.42% to close at ₦1.51.

On the losing side, International Breweries declined by 7.18% to ₦8.40. Tantalizers fell 6.67% to ₦3.50, while Honeywell Flour shed 4.85% to close at ₦31.40.

Vitafoam lost 4.66% to settle at ₦134.90, while UPDC Real Estate Investment Trust (UPDCREIT) declined by 3.74% to ₦19.30.

Trading activity increased sharply, with investors exchanging 2.91 billion shares valued at ₦78.66 billion in 28,318 deals.

Livestock Feeds led trading by volume, accounting for 2.20 billion shares, while First Holdco topped transactions by value with trades worth ₦32.40 billion.

THE ISSUES

Thursday’s recovery suggests that investors returned to selected equities after two sessions of losses, taking advantage of lower share prices to buy stocks they considered attractive. This buying activity, commonly called bargain hunting, helped push the broader market higher.

However, the positive market breadth shows that the recovery was not limited to a few stocks. More shares gained than declined, although individual companies recorded significantly different performances.

The sharp increase in trading volume also deserves attention. Livestock Feeds accounted for about 75.6% of the 2.91 billion shares traded, meaning the overall volume surge was heavily concentrated in one stock. High trading volume does not automatically mean the entire market experienced a similar increase in investor demand.

First Holdco’s ₦32.40 billion contribution to traded value also shows that a substantial portion of the day’s transactions was concentrated in a single company.

For investors, the distinction matters. A rise in the market index indicates an improvement in overall share prices, but trading concentration can make the headline figures appear stronger than activity across the wider market.

WHAT’S NEXT

Investors will be watching whether the buying interest continues in subsequent sessions and whether the market can sustain its recovery. The performance of leading stocks, market breadth and trading activity will help indicate whether Thursday’s gain marks a lasting improvement or a short-term rebound.

BOTTOM LINE

The NGX added ₦328 billion on Thursday as investors returned to selected stocks after two days of losses. However, the concentration of trading volume in Livestock Feeds means the surge in market activity should not be interpreted as an equally broad increase in demand.