(DDM) – Selective buying activities lifted the Nigerian Exchange (NGX) equities market by ₦3.45 billion as investors cautiously returned to the market to pick stocks considered undervalued and resilient.
Market data from the trading session showed that renewed interest in select equities pushed the overall market capitalisation upward, reflecting a modest rebound after periods of subdued activity and profit-taking.
Investors concentrated their demand on a narrow group of stocks rather than broad-based buying, signaling a cautious but deliberate investment strategy amid prevailing economic uncertainties.
NPF Microfinance Bank emerged as one of the session’s strongest performers, recording a significant price appreciation that placed it among the day’s top gainers.
Morison Industries also attracted strong investor demand, closing the session with notable gains that reinforced its position on the gainers’ chart.
Market analysts attributed the positive performance of both stocks to renewed confidence driven by expectations of improved financial performance, balance sheet stability, and long-term growth prospects.
Trading records indicated that buy-side pressure outweighed sell orders for these equities, pushing prices higher despite generally mixed sentiment across the broader market.
Although the market recorded a net gain, analysts noted that activity remained selective, with investors avoiding aggressive exposure to risk-sensitive stocks.
The NGX All-Share Index reflected the improved sentiment by closing higher, supported largely by gains in small- and mid-cap stocks rather than heavyweight equities.
Market watchers observed that banking and industrial stocks attracted moderate attention, while consumer goods and energy stocks traded with caution.
Analysts explained that investors are currently responding to macroeconomic signals, monetary policy expectations, and company-specific fundamentals rather than speculative momentum.
They added that the selective buying pattern suggests that market participants remain wary of inflationary pressures, exchange rate volatility, and liquidity conditions within the economy.
Despite these concerns, the modest increase in market capitalisation signals a level of resilience, as investors continue to search for value opportunities within the equity market.
Stockbrokers said many investors are positioning ahead of corporate earnings releases, dividend announcements, and audited financial statements expected in the coming weeks.
They noted that stocks with relatively low entry prices and strong recovery potential are likely to continue attracting attention in the near term.
Market sentiment indicators showed mixed breadth, with gainers narrowly edging out losers, reinforcing the view that the session’s gains were driven by targeted interest rather than widespread optimism.
Analysts cautioned that sustained market growth will depend on stronger economic data, policy clarity, and improved investor confidence.
They advised investors to remain disciplined, conduct proper due diligence, and focus on fundamentally sound stocks capable of weathering economic fluctuations.
As trading continues, experts expect the NGX to experience intermittent gains supported by selective buying, while broader market direction will remain sensitive to both domestic and global economic developments.
The ₦3.45 billion increase, though modest, reflects a gradual attempt by investors to regain footing in the market while balancing risk and opportunity.
