NGX ends two-day losing streak with N70.62bn gain as investors return to large caps

The Nigerian stock market rebounded on Wednesday, August 6, as the NGX All-Share Index rose 0.04% to 244,912.24 points from 244,802.83 points. The gain ended two consecutive sessions of losses and added N70.62 billion to investors' wealth.

Buying interest in bellwether stocks, including FirstHoldco, Nestlé, and Wema Bank, drove the recovery. That happened even though more stocks fell than rose during the session, leaving market breadth negative.

Gainers and losers

Linkage Assurance (LINKASSURE) rose from N1.61 to N1.77, gaining N0.16 or 9.94%. Associated Asset Management (AVACAP) advanced from N9.95 to N10.90, adding N0.95 or 9.55%. FTN General Insurance (FTGINSURE) increased from N2.60 to N2.80, up N0.20 or 7.69%. McNichols Plc climbed from N5.45 to N5.85, gaining N0.40 or 7.34%. Wapic Insurance rose from N2.36 to N2.49, adding N0.13 or 5.51%.

On the downside, Honeywell Flour Mills (HONYFLOUR) declined from N18.10 to N16.30, shedding N1.80 or 9.94%. PZ Cussons Nigeria fell from N83.00 to N74.75, down N8.25 or 9.94%. Zochis (ZICHIS) dropped from N23.00 to N20.76, losing N2.24 or 9.74%. Learn Africa slipped from N10.40 to N9.40, down N1.00 or 9.62%. Neimeth International Pharmaceuticals declined from N9.00 to N8.25, shedding N0.75 or 8.33%.

The year-to-date return on the NGX improved to 57.39% after Wednesday's close.

Market activity

Investors traded 824.06 million shares worth N25.47 billion in 48,114 deals during the session. FCMB led the activity chart with 369.24 million shares valued at N4.07 billion. FirstHoldco followed with 43.47 million shares worth N5.68 billion, making it the most valuable stock traded. CHAMS recorded 46.68 million shares valued at N201.82 million. Access Holdings traded 29.81 million shares worth N777.95 million. Linkage Assurance exchanged 19.55 million shares valued at N33.51 million.

Otedola's FirstHoldco stake

The market report follows news that Femi Otedola, Chairman of First HoldCo Plc, bought an additional 680.8 million shares through a private placement. That pushed his ownership to 20.42% and lifted the market value of his stake to roughly N1.05 trillion. The acquisition was completed at N44 per share, below the company's July 18 closing figure of N61. Total spending on the new shares came to about N30 billion, with Otedola and one other institutional investor taking up approximately 90% of the N45 billion placement.

The modest gain shows how much influence a few heavyweight stocks now have over the NGX. With market breadth still negative, the rally depends on sustained demand for large-caps.