The Nigerian stock market has recovered from losses it recorded in November as investors gained N2.436 trillion in the five trading days of last week.

Specifically, the Nigerian Exchange Limited, NGX, market capitalisation, which represents the total value of shares listed on the Exchange, rose to N93.722 trillion on Friday from N91.286 trillion the previous week.

In the same manner, another major market indicator, NGX All Share Index, ASI, surged by 2.5% to close last Friday at 147040.08 points from 143,520.53 points the previous week.

Analysts attributed the rebound to, among other factors, investors repositioning their assets ahead of year end.

They opined that the month of December opened with cautious sentiment as investors reassessed price levels across major sectors, but buying interest gradually strengthened throughout the week under review allowing the market to close in positive territory. Further analysis of trading showed that a total turnover of 6.617 billion shares worth N113.224 billion in 109,590 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 4.140 billion shares valued at N115.889 billion that exchanged hands the previous week in 102,351 deals.

The ICT Industry (measured by volume) led the activity chart with 3.500 billion shares valued at N17.759 billion traded in 11,184 deals; thus contributing 52.89% and 15.68% to the total equity turnover volume and value respectively. The Financial Services Industry followed with 2.625 billion shares worth N50.188 billion in 42,574 deals.

Third place was the Services Industry, with a turnover of 104.524 million shares worth N1.166 billion in 7,255 deals. Trading in the top three equities, namely E-Tranzact International Plc, Cornerstone Insurance Plc and Access Holdings Plc (measured by volume), accounted for 4.871 billion shares worth N27.422 billion in 6,438 deals, contributing 73.60% and 24.22% to the total equity turnover volume and value respectively.

Reacting to market development, analysts at InvestData Consulting Limited, stated: “Last week’s trading behaviour reflects an environment where investors particularly institutional players, are gradually repositioning for the final stretch of the year. “Rather than pursuing speculative swings, the approach has been more selective and value-driven, targeting stocks with stable fundamentals, improved liquidity, and favourable technical setups.

“This slow and deliberate flow of funds into equities has contributed to the market’s ability to hold steady even when selling pressure surfaces in certain segments”.