The Nigerian stock market kicked off the new trading week on a positive note as strong buying interest in major banking stocks added N288.44 billion to investors’ wealth, overcoming losses across several other sectors. Despite a broader market selloff that saw more declining stocks than gainers, the Nigerian Exchange (NGX) closed higher on Monday, August 3, thanks to impressive performances from banking giants such as First HoldCo, United Bank for Africa (UBA), Zenith Bank, GTCO, Fidelity Bank, and Access Holdings.
The benchmark NGX All-Share Index (ASI) climbed by 0.18% to settle at 245,730.53 points, while the total market capitalization increased from N158.33 trillion to N158.61 trillion. The market’s year-to-date return improved to 57.91%, reflecting sustained investor confidence despite recent bouts of profit-taking. Although market activity remained mixed, the positive close signals that investors continue to see value in fundamentally strong banking stocks as earnings expectations remain optimistic.
Banking stocks were the clear winners of the session, providing nearly all the momentum needed to lift the broader market. First HoldCo emerged as one of the strongest performers, rising 3.43% to close at N134.00, while UBA gained 3.37% to N46.00. Zenith Bank, Fidelity Bank, GTCO, and Access Holdings also posted gains, reinforcing confidence in Nigeria’s financial sector. Outside banking, MTN Nigeria and NASCON Allied Industries added modest support, helping cushion the impact of losses recorded elsewhere.
However, the bullish momentum was tempered by heavy selling pressure across the insurance, consumer goods, and oil and gas sectors. Ecobank Transnational Incorporated (ETI) suffered the day’s biggest decline among heavyweight stocks, plunging 9.95%, while Cadbury Nigeria, Custodian Investment, Oando, Transcorp, Dangote Sugar, and Nigerian Breweries also closed lower. The Insurance Index recorded the steepest sectoral loss, falling 1.78%, while consumer goods and oil & gas posted marginal declines. Overall market breadth remained negative, with 38 stocks declining against 24 gainers, highlighting that the market’s positive finish was driven largely by a handful of influential large-cap stocks.
Trading activity also painted an interesting picture of investor behaviour. While the number of deals surged by more than 30% to 72,544 transactions, both trading volume and value declined, suggesting that retail investors were more active even as institutional participation slowed. Access Holdings led trading by volume with 166.64 million shares, while Aradel Holdings topped the value chart at N4.59 billion. Looking ahead, market analysts expect the NGX to maintain a cautiously bullish outlook, supported by sustained demand for quality banking stocks. However, lingering profit-taking in consumer, insurance, and energy counters could continue to limit the pace of further gains in the coming sessions.
source: nairametrics
