Onome Amuge
The Nigerian stock market staged a strong rebound on Thursday, snapping a three-day losing streak and delivering investors a N520.71 billion windfall as renewed demand for beaten-down shares lifted sentiment across the board.
The benchmark NGX All-Share Index (ASI) advanced by 0.60 per cent to 138,980.01 points, while total market capitalisation rose to N87.94 trillion, reversing losses that had dragged the market lower through much of the week. Year-to-date, the bourse has now gained 35.03 per cent, placing it among the top-performing frontier markets.
Market breadth was firmly positive, with 40 stocks advancing against just 13 decliners, reflecting a recovery across banking, insurance, and consumer goods counters. Sectoral indices were predominantly green, led by a 6.73 per cent climb in insurance stocks, a 1.54 per cent gain in consumer goods, and a 0.98 per cent rise in banking shares. Only the industrial and commodity sectors finished flat.
Trading activity was mixed as deal count fell by 13.5 per cent to 24,387, while the total value of trades dropped 20.21 per cent to N15.7 billion. But turnover in volume terms rose 273.96 per cent to 1.81 billion units, driven largely by outsized transactions in Sovereign Insurance Plc, which accounted for nearly 78 per cent of total shares exchanged.
Among the day’s biggest gainers, Ellah Lakes Plc stood out. Shares in the agribusiness and agro-allied company increased 10 per cent to close at N12.98, up from N11.80 previously. The move placed Ellah Lakes at the top of the advancers’ chart, alongside Veritas Kapital.
Founded as an oil palm cultivation enterprise but now expanding into cassava and other agricultural value chains, Ellah Lakes has long pitched itself as a player capable of supporting Nigeria’s push for food security and import substitution. But its stock has often been volatile, reflecting thin liquidity and investor caution over execution risks.
Thursday’s rally came amid renewed buying interest in medium-cap stocks that had retreated earlier in the week, with traders citing opportunistic accumulation as prices dipped. Analysts noted that Ellah Lakes may also have benefited from expectations of policy support for agribusinesses, particularly following recent statements from federal officials about boosting domestic food production to tackle inflation.
The company has announced plans in recent months to expand its farmland footprint and build integrated processing facilities. While profitability remains modest, investors appear to be betting that execution of its growth strategy could yield long-term returns, especially if commodity prices remain firm.
Insurance counters were another bright spot, led by Veritas Kapital Assurance Plc, which matched Ellah Lakes with a 10 per cent jump to N1.98 per share. The stock extended its recent momentum, benefiting from sector-wide inflows that saw the insurance index post the day’s strongest sectoral gain.
Veritas Kapital, one of Nigeria’s smaller listed insurers, has sought to strengthen its capital base and improve underwriting efficiency in recent years. The company’s efforts to digitalise its service channels and broaden distribution have drawn attention, even as the industry faces low penetration rates and stiff competition.
Market watchers said Thursday’s rise was emblematic of speculative rotation into lower-priced financial services stocks, where retail participation remains high. But they added that the broader rally in the insurance index signalled growing confidence in the sector’s potential upside, particularly as regulators push for recapitalisation and stronger governance frameworks.
Other notable gainers included Honeywell Flour Mills (+9.95%), Royal Exchange (+9.94%), and AXA Mansard Insurance (+9.94%), underscoring the breadth of the rally. The advances were partly fuelled by renewed optimism around consumer-facing stocks, which had been battered earlier by inflationary pressures and foreign exchange volatility.
On the flipside, laggards were led by Austin Laz & Co (-9.75%), Neimeth Pharmaceuticals (-8.33%), and Champion Breweries (-4.15%), as profit-taking weighed on select small- and mid-cap counters.
On the volume and value charts, Sovereign Insurance Plc was the clear leader, with 1.4 billion shares exchanged in 124 deals, accounting for 77.9 per cent of total volume and 26.4 per cent of total market value. Nigerian Breweries followed distantly with 41 million shares traded, while Fidelity Bank, Zenith Bank, and Universal Insurance rounded out the top five by volume.
The rebound comes at a pivotal moment for Nigerian equities, which had been under pressure amid concerns about high inflation, currency weakness, and global risk aversion. Analysts said Thursday’s gains suggested that investors were re-engaging ahead of the Eid-ul-Mawlid holiday, with many taking advantage of discounted valuations after recent declines.
“The sharp rebound reflects a combination of bargain-hunting and positive sentiment around medium-cap counters. We expect the market to trade sideways in the near term, with sectoral rotations likely to dominate activity,” said Atlass Portfolio Ltd in a note to clients.
