The Nigerian Exchange rebounded strongly on Friday, August 28, with investors gaining about ₦1.38 trillion in a single trading session as buying returned to major stocks after a prolonged market sell-off.
The NGX All-Share Index rose 0.90% to close at 241,298.47 points, while equity market capitalisation increased to about ₦155.83 trillion from ₦154.44 trillion in the previous session.
The rebound came after the market had spent much of the previous two weeks under pressure from profit-taking, with investors selling shares after the strong rally that pushed Nigerian equities to record levels earlier in August.
Buying interest returned across several sectors on Friday, helping the market build on its recovery after the selling pressure eased.
Seplat was among the biggest gainers, rising 10%, while Transcorp Hotels and Omatek also recorded strong gains. Buying interest in major banking and large-cap stocks also supported the broader market recovery.
The positive close helped the NGX end the week higher, although the market remains below the record levels reached earlier in the month.
For investors, the sharp rebound raises a new question: whether Friday’s gains mark the beginning of a sustained recovery or simply a temporary bounce following weeks of profit-taking.
That answer may become clearer when trading resumes next week, particularly if buying interest continues in the large companies that have a significant influence on the movement of the All-Share Index.
The market’s recent swings also underline how quickly investor sentiment can change after a strong rally. While Friday’s gains restored part of the value lost during the correction, the next trading sessions will show whether buyers have returned strongly enough to establish a new upward trend.
