Investors gain N290bn as banking stocks lift NGX despite weak market breadth
Investors gained about N290 billion on the Nigerian Exchange (NGX) on Monday as renewed buying interest in banking stocks lifted market capitalisation to N158.61 trillion, despite weaker trading activity and a negative market breadth.
The benchmark NGX All-Share Index (ASI) advanced 0.18 per cent to close at 245,730.53 points, raising the market’s year-to-date return to 57.91 per cent from 57.62 per cent in the previous session.
The market rally was driven by gains in First HoldCo Plc, which appreciated 3.43 per cent, United Bank for Africa Plc, up 3.37 per cent, and Omatek Ventures Plc, which rose 9.88 per cent, offsetting losses recorded by Cadbury Nigeria Plc, Consolidated Hallmark Holdings Plc and Trans-Nationwide Express Plc.
Despite the positive close, trading activity weakened as total volume traded declined 2.12 per cent to 923.01 million shares, while the value of transactions dropped 19.02 per cent to N37.85 billion.
Honeywell Flour Mills Plc led the volume chart with 93.55 million shares, while Aradel Holdings Plc recorded the highest value of transactions at N4.59 billion.
Market sentiment remained broadly cautious, with 25 equities recording gains against 38 losers, resulting in a negative market breadth ratio of 0.66 times.
Caverton Offshore Support Group Plc emerged as the session’s highest gainer with a 10 per cent appreciation, while Ecobank Transnational Incorporated led the losers’ chart after shedding 9.95 per cent.
Activity in the NASD Over-the-Counter Securities Exchange was stronger, with the NASD Security Index gaining 2.08 per cent to 4,523.85 points, lifting market capitalisation to N2.72 trillion and increasing the year-to-date return to 27.66 per cent.
Trading volume on the NASD market more than doubled, rising 113.09 per cent to 1.47 million units, although transaction value declined 13.05 per cent to N65.24 million across 31 deals.
In the foreign exchange market, the naira strengthened marginally by 0.25 per cent at the Nigerian Foreign Exchange Market (NAFEM) to close at N1,364.83 per United States dollar.
Meanwhile, international oil prices retreated sharply after United States President Donald Trump delayed a planned military strike on Iran in anticipation of possible diplomatic engagement.
Brent crude declined 5.41 per cent to $83.46 per barrel, while West Texas Intermediate (WTI) crude fell 7.05 per cent to $79.26 per barrel, although analysts noted that geopolitical tensions and supply disruptions across the Middle East continue to pose upside risks to global oil prices.
In the United States, New York Federal Reserve President John Williams reiterated expectations that inflation would continue easing through the second half of 2026 and into 2027, while supporting the Federal Reserve’s decision to maintain interest rates within the 3.50 to 3.75 per cent range.
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