Nigeria’s equities market staged a modest rebound on Thursday, adding N100.5bn in market value as strong demand for Seplat Energy and selected banking stocks lifted the benchmark index, even as the insurance sector remained under pressure.
Trading volume jumped by 161.79 per cent to about 1.4 billion shares, reflecting a sharp increase in investor activity during the session.
The Nigerian Exchange All-Share Index rose by 155.03 points, or 0.06 per cent, to close at 242,378.13, while total market capitalisation climbed from the previous session to N157.15tn.
Despite the headline recovery, market breadth remained negative, with 29 stocks recording losses compared with 23 gainers.
Seplat leads market rebound
Seplat Energy Plc was the major catalyst behind the market’s recovery, gaining the maximum 10 per cent to close at N14,907.80 per share.
The strong performance in the energy stock helped push the Oil and Gas index up by 0.8 per cent and provided the strongest support for the broader market.
Japaul Gold & Ventures Plc followed closely among the top gainers, rising 9.83 per cent to N2.57.
Tantalizer Plc added 8.29 per cent to close at N3.79, while Secure Electronic Technology Plc appreciated by 7.94 per cent to 68 kobo.
Access Holdings Plc also strengthened by 5.66 per cent to N28.00 per share.
Insurance stocks fail to join the rally
The recovery was not broad-based across the financial market.
While the Banking index gained 0.7 per cent, the Insurance index declined by 0.4 per cent, placing insurance among the weaker-performing sectors of the session.
The divergent performance highlights the uneven flow of investor demand across Nigeria’s financial services stocks.
Banking counters benefited from renewed buying interest, but insurance equities did not attract enough demand to participate in the broader market recovery.
For insurers listed on the NGX, the performance comes at a particularly important period as the industry undergoes major regulatory and capital reforms.
Investors remain selective
The combination of higher trading volume and negative market breadth suggests that investors were actively repositioning rather than engaging in a broad-based buying spree.
More than 1.4 billion shares changing hands indicates significant market participation, but the fact that losers outnumbered gainers points to continued caution.
The sectoral picture reinforces that trend. Oil and Gas and Banking stocks attracted buying interest, while Consumer Goods fell by 1 per cent and Insurance declined by 0.4 per cent.
Industrial Goods remained unchanged.
Insurance faces a different investor test
The weakness in insurance equities comes as listed insurers operate against the backdrop of the industry’s ongoing recapitalisation programme and efforts to strengthen their financial capacity.
The reforms are expected to produce stronger insurers capable of underwriting larger risks, but investors are also watching how individual companies translate additional capital into sustainable earnings, stronger balance sheets and improved shareholder value.
That makes the performance of insurance stocks increasingly important as the sector moves through a period of structural change.
For now, Thursday’s market action suggests investors remain selective, favouring counters and sectors where they see stronger near-term catalysts.
Market recovery masks mixed sentiment
Although the market added N100.5bn and the All-Share Index moved higher, the session was far from a uniform rally.
The 23 gainers versus 29 losers showed that the positive headline numbers were largely driven by a relatively small group of strong-performing stocks.
Seplat’s 10 per cent jump was particularly influential, while gains in banking counters such as Access Holdings provided additional support.
At the same time, the decline in the Insurance and Consumer Goods indices demonstrated that pockets of selling pressure remain across the market.
The latest session therefore paints a picture of a market recovering in value but still characterised by cautious and highly selective investor positioning.
