Nigerian equities extended their recovery rally, adding N3.17 trillion in market capitalisation over the past week as investors piled into banking, consumer goods, and oil and gas stocks. The Nigerian Exchange (NGX) All-Share Index climbed by 2.8% to close at 52,400 points, while market capitalisation rose to N28.5 trillion, according to data from the NGX.
Banking Stocks Lead the Charge
The banking sector was the standout performer, with the NGX Banking Index jumping 5.1% during the week. Guaranty Trust Holding Company (GTCO) led gains, rising 7.8% to N24.50, followed by Zenith Bank which added 6.2% to close at N26.80. Access Holdings also advanced 4.5% to N12.60. Analysts attributed the rally to bargain hunting after recent price declines and expectations of strong dividend payouts.
Consumer Goods and Oil Stocks Join Rally
The consumer goods index gained 3.2%, supported by Nestle Nigeria which rose 4.1% to N1,020, and Flour Mills of Nigeria which added 3.8% to N35.50. In the oil and gas sector, the index appreciated by 2.9% as Seplat Energy climbed 5.3% to N1,480 and TotalEnergies Marketing Nigeria advanced 4.0% to N260.00. The recovery in oil prices on the global market boosted investor sentiment toward energy stocks.
Market Breadth and Trading Volume
Market breadth was positive, with 42 stocks gaining versus 21 losers. Total trading volume surged 35% to 2.1 billion shares worth N28.6 billion, compared to 1.56 billion shares valued at N21.2 billion in the prior week. The most traded stocks by volume included GTCO, Zenith Bank, and Transcorp, which together accounted for 40% of total turnover.
Analysts See Further Upside
According to analysts at Lagos-based investment firm Meristem Securities, the recovery is likely to continue in the near term, driven by positive corporate earnings and improved macroeconomic outlook. “We expect the bullish momentum to persist as investors reposition for the second half of the year, with focus on fundamentally sound stocks that offer attractive dividend yields,” the firm stated in a note to clients. However, they cautioned that profit-taking could emerge if the rally becomes too rapid.
Economic Context and Outlook
The stock market recovery comes amid easing inflation pressures and a stable naira, which have boosted investor confidence. The Central Bank of Nigeria’s recent monetary policy committee meeting held rates steady at 27.50%, providing further clarity for markets. The NGX has now recovered nearly 60% of its losses from the 2024 bear market, with year-to-date returns standing at +15.2%. Market capitalisation has risen by N4.5 trillion since the start of 2026, reflecting sustained buying interest from domestic institutional investors and foreign portfolio inflows.
