Emmanuel OchayiNigeria’s equity market recorded its first gain in March after three days of losses. The market rose by 0.32% on Thursday as investors moved to acquire low-priced stocks.
Shares of Transcorp, Africa Prudential, and SCOA led the rally, helping to push the Nigerian Exchange Limited (NGX) equity market upwards.
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Following a series of negative trading sessions, investors saw an opportunity to buy stocks at lower prices. This move led to increased demand, particularly for key stocks that had recorded significant price drops earlier in the week. The renewed investor interest signalled confidence in the equity market, despite recent declines.
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Transcorp saw the highest increase, rising from N47.10 to N51.80, marking a gain of 9.98%. SCOA followed with a jump from N3.44 to N3.78, representing a 9.88% increase. Africa Prudential also performed well, moving from N27.85 to N30.60, adding 9.87% to its value.
Key Stocks Drive Growth in the Equity Market
Other stocks that contributed to the market’s rise included Tantalizer, which grew by 9.72% to N2.37, and Caverton, which increased by 9.52% to N2.76. These gains reflected a broader shift in investor sentiment, with traders seeking to capitalise on the low prices of stocks.
At the close of trading, the NGX All-Share Index (ASI) rose to 106,780.72 points from its previous 106,436.48 points. Similarly, the market capitalisation increased from N66.653 trillion to N66.868 trillion, indicating a renewed level of investor confidence.
Trading Volume Increases as Confidence Returns
Investor participation remained strong, with stocks like GTCO, Access Holdings, Zenith Bank, Fidelity Bank, and United Bank for Africa among the most actively traded stocks. In total, 375,725,297 shares were exchanged in 11,447 deals, amounting to a market value of N10.185 billion.
Despite the positive movement, the stock market has declined by 0.97% this month. However, the year-to-date return remains positive at 3.74%, showing resilience in the equity market despite recent downturns.
Future Outlook for the Equity Market
Market analysts believe that investor interest in undervalued stocks could continue to drive the market in the coming days. With economic factors influencing trading activity, investors are expected to remain strategic in their stock selections.
The market’s performance will depend on key economic indicators and investor sentiment. While short-term fluctuations may occur, the broader market trend suggests that investors are keen on taking advantage of price corrections.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
