Oil, Banking Stocks Lift Nigerian Equities Market by 0.37%
The Nigerian equities market experienced a rebound on Wednesday as oil and banking stocks drove intraday gains, offering a glimmer of hope to investors following recent selloffs triggered by interest rate hikes.
Trading activity on the Nigerian Exchange (NGX) showed increased buying interest, particularly in energy and banking sectors, with Oando Energy and newly listed Aradel Holdings Plc taking the spotlight. Midday trading saw the NGX All Share Index (ASI) climb by 0.37%, reflecting a shift in sentiment toward capital appreciation.
In a market note, Alpha Morgan Capital Limited highlighted the positive trajectory, attributing the uptick to renewed investor confidence in mid- to high-capitalized stocks. Aradel Holdings Plc led the gainers’ chart, posting a 9.23% increase in early trading hours. Similarly, Oando Energy recorded a price hike of 3.23%, reversing its recent downward trend.
The banking sector also witnessed notable activity, with Wema Bank gaining 2.30% and UBA advancing by 1.41%. Sterling Bank saw a moderate surge of 0.84%, while Zenith Bank rose by 0.69%, driven by strong buying sentiment.
Analysts noted that the market’s performance underscores investor resilience despite lingering economic uncertainties. “This upward trend reflects optimism for potential capital appreciation, which could bolster investor wealth in the near term,” a stockbroker observed.
While oil and energy stocks faced previous selloffs due to market volatility, the resurgence of buying interest signals renewed confidence in these sectors. The day’s performance offers a hopeful outlook for the equities market as investors continue to navigate a challenging economic landscape. Fire Engulfs Radio Nigeria Ikoyi, No Casualties Reported
