Banking Stocks power Market as NGX gains N609bn in Rally

By Taiye Olayemi

The Nigerian stock market began the week on a positive note, gaining N609 billion in value as banking and other major stocks pushed the market upward.

Market capitalisation rose by 0.44 per cent to N140.435 trillion, up from N139.826 trillion recorded at the close of the previous session. In the same vein, the All-Share Index climbed by 946.27 points, or 0.44 per cent, to close at 218,113.84.

The rally was largely driven by strong buying interest in banking stocks and select mid- and large-cap equities, reinforcing investor confidence at the start of the trading week.

Top gainers included Nigerian Aviation Handling Company and Union Dicon Salt, which both appreciated by 10 per cent to close at N242 and N18.15 per share respectively. Fidelity Bank also recorded a 9.98 per cent gain to close at N22.05, while Trans-Nationwide Express rose by 9.92 per cent to N6.65. Access Corporation advanced by 9.87 per cent, ending the session at N32.85 per share.

Despite the overall positive outing, the market recorded nearly equal numbers of gainers and losers, with 36 stocks appreciating against 35 decliners, indicating a mixed trading session beneath the broader bullish trend.

On the losers’ chart, Stanbic IBTC and Livingtrust Mortgage Bank both declined by 10 per cent to close at N169.70 and N3.69 respectively. Transcorp Power shed 9.97 per cent to N272.70, while Abbey Mortgage Bank dropped by 9.88 per cent to N7.30. Guinea Insurance also fell by 8.80 per cent to N1.14 per share.

Trading activity, however, declined compared to the previous session. A total of 983.9 million shares valued at N50.8 billion were exchanged in 76,410 deals, representing a 21.79 per cent drop in volume.

Access Corporation recorded the highest trading volume with 91.65 million shares, accounting for 9.31 per cent of total trades, while Zenith Bank led in value terms with transactions worth N7 billion, representing 13.80 per cent of the day’s total.

Market analysts attributed the positive performance largely to the banking sector. Vice President of Highcap Securities, David Adonri, said the rally was driven by strong demand for banking stocks, particularly mid-tier lenders.

He noted that stocks such as Access Bank, Fidelity Bank and Sterling Bank witnessed heightened investor interest, while United Bank for Africa rebounded strongly, crossing the N50 mark after trading below that level for an extended period.

According to Adonri, the banking sector posted a highly bullish performance and played a decisive role in lifting the overall market.

With the year-to-date return now at 40.16 per cent, the latest gains signal sustained investor appetite for equities, particularly in the banking space, even as market activity showed signs of slowing.