Nigeria’s equities market recorded a strong rebound on Tuesday as renewed investor appetite for banking and select industrial stocks lifted the total market capitalisation by N340bn, reinforcing confidence in fundamentally sound equities despite mixed trading indicators.
Data from the Nigerian Exchange Limited showed that the market capitalisation rose to N106.5tn, buoyed largely by gains in tier-one banking stocks and price appreciation across pockets of the industrial sector.
The upbeat performance came even as overall trading volume and deal count declined, signalling a shift toward high-value, institutional-driven transactions.
A total of 736.1 million shares were traded in 45,994 deals, with investors exchanging equities worth N24.37bn during the session. Compared with the previous trading day, market volume dipped by three per cent, while the number of executed deals fell by 17 per cent.
However, turnover jumped by 32 per cent, reflecting increased participation in large-cap stocks, particularly within the financial services sector.
Market analysts said the divergence between volume and value underscored selective positioning by investors focusing on fundamentally strong stocks amid expectations of improved earnings and sector resilience.
Banking stocks fuel market rally
The rally was largely driven by banking stocks, which dominated both trading activity and value turnover, reaffirming their position as the backbone of the Nigerian equities market.
Investors showed strong preference for financial services equities with robust balance sheets, stable dividend histories and growth prospects.
Guaranty Trust Holding Company emerged as the most actively traded stock by value, with 65.9 million shares exchanged at N6.53bn, reflecting sustained institutional demand. Zenith Bank followed closely, recording 35.4 million shares worth N2.56bn, while Custodian Investment Plc traded 49.8 million shares valued at N2.20bn
Other notable contributors included Chams Plc, which saw 55.7 million shares traded for N250m, and Universal Insurance Company, with 36 million shares worth N52m.
Market watchers noted that the renewed interest in banking stocks is tied to expectations of improved margins, higher interest income and the sector’s ability to withstand macroeconomic headwinds better than many other segments of the market.
Industrial stocks add momentum
Beyond banking stocks, select industrial equities also provided significant upward momentum. Industrial and Medical Gases Plc topped the gainers’ chart with a 10 per cent appreciation, closing at N34.65 per share.
The stock’s performance reflected growing investor confidence in industrial production and infrastructure-related businesses
Union Dicon Salt Plc also gained 10 per cent to close at N9.90, while Zichis Agro Allied Industries rose by the same margin to N5.06. Austin Laz & Company advanced 10 per cent to N4.07, adding to the day’s bullish sentiment.
RT Briscoe climbed 9.95 per cent to N9.50, while Morison Industries appreciated by 9.93 per cent, closing at N12.07 per share.
Analysts attributed the widespread gains to bargain hunting and renewed interest in mid-cap stocks with growth potential.
In total, 35 equities closed in positive territory, compared with 34 losers, highlighting a broadly balanced but optimistic market session.
Losses reflect profit-taking
Despite the overall positive outcome, several stocks recorded sharp declines as investors engaged in profit-taking and portfolio rebalancing. Cutix Plc led the losers, shedding 10 per cent to close at N3.15 per share.
Omatel Ventures also fell by 10 per cent to N2.43, while Union Homes Real Estate Investment Trust declined 9.95 per cent to N76.90.
Sunu Assurances Nigeria dropped 9.94 per cent to N4.62, and Deap Capital Management slid 9.93 per cent to N7.62.
Chams Plc, despite high trading activity, lost 9.90 per cent to close at N4.37, reflecting heightened volatility in some lower-priced stocks.
Market sentiment and outlook
Stockbrokers described the session as a clear indication of improving investor confidence, particularly in the banking sector, which continues to attract inflows amid evolving monetary and fiscal conditions.
According to analysts, the surge in market capitalisation despite reduced trading volume suggests that investors are increasingly strategic, concentrating funds in high-quality stocks rather than spreading exposure across speculative counters.
They added that the performance of banking stocks will remain critical to overall market direction, given their heavy weighting in key indices and their role in driving liquidity.
Looking ahead, market participants are expected to closely monitor macroeconomic indicators, corporate earnings releases and policy signals that could influence investor sentiment.
While short-term volatility may persist, analysts believe sustained interest in banking and industrial stocks could continue to support the market in the near term.
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