Equity investors gain N1.52trn as banking stocks lift NGX

Equity investors gained N1.52 trillion at the start of the trading week as renewed demand for tier-one banking stocks reversed part of last week’s losses and pushed the Nigerian Exchange (NGX) higher.

The bullish sentiment saw the NGX All-Share Index (ASI) rise by 0.97 per cent to close at 238,219.19 points from 235,941.27 points recorded in the previous session, while market capitalisation increased by N1.52 trillion to N152.85 trillion.

The market rebound also lifted the year-to-date return to 53.08 per cent from 51.62 per cent, signalling a recovery in investor confidence after the recent sell-off that wiped out about N9 trillion from the equities market value during June.

Market gains were largely driven by renewed buying interest in major banking stocks, with First HoldCo advancing by 10 per cent, GTCO appreciating by 10 per cent, while Zenith Bank gained 7.09 per cent.

The strong performance of these bellwether banking stocks outweighed losses recorded in Eterna, which declined by 9.90 per cent, Deap Capital Management by 9.82 per cent and Austin Laz by 9.74 per cent.

Investor appetite also improved trading activity, with the volume of shares traded rising by 8.05 per cent, while the value of transactions surged by 47.86 per cent.

Fidelity Bank emerged as the most actively traded stock by volume with 48.75 million shares exchanged, while MTN Nigeria led the value chart after investors traded shares worth N16.64 billion.

Despite the positive market close, breadth remained negative as decliners outnumbered gainers. Twenty-one stocks recorded gains, while 37 equities closed lower, resulting in a market breadth ratio of 0.57 times.

Zichi Cooperative Investment led the losers’ chart with a 10 per cent decline, while First HoldCo topped the gainers’ table after appreciating by the maximum allowable daily limit of 10 per cent.

The rebound in banking stocks comes after heavy losses recorded across the sector last week, when investors took profits following an extended rally that had pushed several banking counters to record highs.

Analysts said renewed bargain hunting in fundamentally strong banking stocks, coupled with attractive valuations following recent price corrections, supported the market’s recovery.

The performance also suggests that institutional investors may be gradually returning to equities after recent portfolio rebalancing and increased allocations to fixed-income securities amid elevated yields in the debt market.

Meanwhile, the NASD Over-the-Counter market also closed on a positive note as the NASD Securities Index advanced by 0.70 per cent to 4,282.51 points.

Market capitalisation of the OTC market appreciated by 0.70 per cent to N2.57 trillion, bringing the market’s year-to-date return to 20.85 per cent.

However, trading activity on the NASD market weakened, with total transaction volume declining by 65.41 per cent, while the value of trades fell by 23.44 per cent to N32.67 million.

Market analysts said the strong recovery recorded in banking stocks would remain crucial to sustaining the broader market rally, particularly as investors continue to balance attractive fixed-income yields against opportunities in fundamentally sound equities.