Equities investors gain N191bn as banks spur NGX rally

Investors on the Nigerian Exchange (NGX gained N191 billion in two consecutive sessions as renewed demand for banking stocks outweighed persistent weakness in consumer goods, lifting market capitalisation to N158.28 trillion despite broadly negative market breadth.

The bullish momentum, driven largely by sustained buying in First HoldCo Plc, FCMB Group and Wema Bank, pushed the benchmark Investors on the Nigerian Exchange (NGX gained N191 billion in two consecutive sessions as renewed demand for banking stocks outweighed persistent weakness in consumer goods, liftingup by 0.12 per cent on Thursday to 245,209.34 points, extending Wednesday’s 0.04 per cent gain and raising the market’s year-to-date return to 57.58 per cent.

The latest advance added N190.94 billion to investors’ wealth over the two trading sessions, recovering part of the N599 billion erased earlier this week when profit-taking in banking stocks and weaker-than-expected half-year earnings from Nestlé Nigeria Plc triggered broad market losses.

Thursday’s rally came despite continued weakness in market participation, underscoring the dominance of selective institutional buying in a handful of banking counters.

Market capitalisation rose by N190.94 billion, from N158.09 trillion on Wednesday to N158.28 trillion, while the ASI advanced from 244,912.24 points to 245,209.34 points.

The rebound was fuelled by gains in First HoldCo (+2.19 per cent), FCMB (+8.55 per cent) and Wema Bank (+6.23 per cent), which offset declines in Ecobank Transnational Incorporated (-9.99 per cent), UBA (-2.03 per cent) and May & Baker (-7.50 per cent).

Trading activity, however, remained subdued as investors adopted a cautious stance ahead of more corporate earnings releases.

Total volume traded declined by 35.47 per cent to 531.77 million shares, while transaction value dropped 19.68 per cent to N20.46 billion.

FCMB emerged as the most actively traded stock by volume with 131.74 million shares, while First HoldCo led the value chart with transactions worth N5.95 billion, reflecting sustained investor interest in banking equities.

Market breadth remained negative, with 23 gainers against 36 losers, indicating that the market’s positive close was largely driven by price appreciation in a limited number of heavyweight stocks.

Eterna Plc topped the gainers’ chart with a 10.00 per cent increase, followed by AVA Capital (+9.55 per cent), FTN Cocoa Processors (+7.69 per cent), McNichols (+7.34 per cent), Wapic Insurance (+5.51 per cent) and First HoldCo (+5.38 per cent).

On the losers’ table, ETI led with a 9.99 per cent decline, followed by Honeywell Flour Mills (-9.94 per cent), Learn Africa (-9.62 per cent), Neimeth International Pharmaceuticals (-8.33 per cent), Africa Prudential (-7.75 per cent) and Legend Internet (-7.69 per cent).

Sectoral performance was mixed. The Banking Index and Insurance Index each gained 0.69 per cent, reflecting renewed demand for financial stocks, while the Consumer Goods Index declined 0.41 per cent and the Oil and Gas Index slipped marginally by 0.005 per cent. The Industrial Goods Index closed flat.

Analysts said the market continues to be supported by expectations of stronger half-year corporate earnings, particularly from the banking sector, although broad investor sentiment remains cautious as elevated interest rates and profit-taking continue to weigh on market breadth.

They noted that sustained accumulation in fundamentally strong banking stocks could continue to support the market in the near term, even as investors remain selective across other sectors.