First HoldCo, UBA lead rally as banking stocks lift NGX

The Nigerian stock market began the new trading week on a positive note on Monday, with investors gaining N288.44 billion as renewed buying interest in major banking stocks outweighed losses recorded in the insurance, consumer goods and oil and gas sectors.

At the close of trading, the Nigerian Exchange (NGX) All-Share Index (ASI) advanced by 0.18 per cent to settle at 245,730.53 points, up from 245,283.68 points recorded in the previous session.

Consequently, market capitalisation increased to N158.61 trillion, compared to N158.33 trillion posted on Friday, reflecting improved investor confidence at the start of August trading.

The latest performance strengthened the market’s year-to-date return to 57.91 per cent, while the month-to-date return stood at 0.18 per cent, extending the bullish momentum that has characterised much of the year.

The day’s gains were largely driven by sustained demand for banking equities, with heavyweight financial institutions accounting for the bulk of the market’s positive performance.

First HoldCo Plc emerged as one of the biggest contributors, appreciating by 3.43 per cent to close at N134.00, up from N129.55, supported by strong liquidity and continued investor interest.

United Bank for Africa (UBA) also recorded impressive gains, rising 3.37 per cent to N46.00, while Zenith Bank added 1.05 per cent to close at N124.90.

Fidelity Bank advanced 1.16 per cent to N21.80, while Guaranty Trust Holding Company (GTCO) appreciated 0.77 per cent to N131.00.

Access Holdings recorded a marginal gain of 0.19 per cent, closing at N26.35.

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Outside the banking sector, MTN Nigeria gained 0.96 per cent to close at N845.00, while NASCON Allied Industries rose 2.63 per cent to N195.00, providing additional support for the market.

Despite the overall positive market performance, several blue-chip stocks recorded significant losses.

Ecobank Transnational Incorporated (ETI) posted the steepest decline among major stocks, shedding 9.95 per cent to close at N80.10, making it the session’s worst-performing heavyweight.

The Banking Index emerged as the strongest performer, climbing 0.75 per cent to close at 2,546.57 points, while the Industrial Index gained 0.21 per cent to 10,546.78 points.

Conversely, the Insurance Index recorded the biggest loss of the day, declining 1.78 per cent to 1,178.75 points.

Although the benchmark index finished in positive territory, overall market breadth remained negative as 38 stocks recorded losses compared with 24 gainers, indicating that declines outnumbered advances during the session.

However, the number of executed deals rose sharply by 30.76 per cent to 72,544 transactions, suggesting increased participation from retail investors despite relatively lower institutional trading activity.

Market analysts said Monday’s performance reflected renewed investor appetite for fundamentally strong banking stocks, particularly First HoldCo, UBA, Zenith Bank, Fidelity Bank and GTCO, while profit-taking continued in selected insurance, consumer goods and energy counters.

The significant increase in transaction count despite lower trading volume and value suggests investors executed smaller but more frequent trades during the session, pointing to stronger retail participation.