Investors Record ₦115bn Gain as Banking and Oil Stocks Drive Market Surge

The Nigerian stock market closed positively on Friday, with investors collectively gaining about ₦115 billion, fueled by renewed interest in banking and oil and gas stocks. The upturn marks a reversal from earlier sessions dominated by profit-taking and cautious trading, highlighting resilience in the equities market despite macroeconomic headwinds.

At the close of trading, the Nigerian Exchange (NGX) All-Share Index (ASI) rose by 0.21 percent to settle at 100,428.12 points compared to the previous day’s 100,218.52 points. The market capitalization of listed equities also climbed, rising from ₦56.7 trillion to ₦56.815 trillion, translating to the ₦115 billion increase in investors’ wealth.

The rally was driven largely by positive sentiment in the shares of tier-one banks and key oil and gas companies. Banking stocks such as Zenith Bank, Guaranty Trust Holding Company (GTCO), and Access Holdings witnessed significant buy pressure after recent sell-offs created entry opportunities for investors seeking short-term gains. Oil and gas equities, particularly Seplat Energy and Oando, also gained, supported by expectations of stable crude prices and optimism about Nigeria’s oil sector outlook.

Market analysts noted that the rebound underscores investor appetite for fundamentally strong stocks, even in the face of economic challenges. According to brokers, bargain hunting has been a key factor, with many investors seeing current price levels as attractive ahead of the next earnings season. The oil and gas sector’s contribution was attributed to stronger global oil prices and hopes for better local output following government interventions to address production bottlenecks.

The banking sector, meanwhile, has been in the spotlight following recent regulatory tightening by the Central Bank of Nigeria (CBN) to control liquidity and stabilize the naira. While the measures initially triggered volatility in banking stocks, long-term investors are beginning to bet on the sector’s resilience, particularly the ability of the big banks to adapt to capital adequacy requirements and new digital banking opportunities. The sentiment was reinforced by reports of strong balance sheets in select institutions, encouraging renewed confidence in the sector.

Despite the day’s gain, trading activity was relatively mixed. Total volume of shares exchanged dipped slightly compared to previous sessions, signaling that while investors are gradually returning to the market, caution remains. Turnover was led by banking names, cement producers, and consumer goods companies. The breadth of the market, however, closed in the green, with more gainers than losers, reflecting improved confidence heading into the new trading week.

Investor optimism is also being supported by expectations that government reforms, though painful in the short term, will eventually stabilize the economy and improve corporate earnings. The removal of fuel subsidies, floating of the naira, and fiscal adjustments have created inflationary pressure and squeezed consumer spending, but investors are beginning to anticipate that the policies will attract more foreign inflows and stabilize macroeconomic indicators in the medium term.

Looking at sectoral performance, the NGX Banking Index and NGX Oil and Gas Index posted the strongest gains. The Banking Index rose by nearly 1 percent, driven by advances in tier-one lenders, while the Oil and Gas Index recorded a solid rebound amid improved outlook for energy demand. Conversely, some losses were seen in the consumer goods segment, where weaker purchasing power and rising costs of production continue to weigh on performance.

Market experts suggest that the equities market may experience further upward momentum if crude oil prices remain stable and banking stocks continue to attract bargain hunters. However, they caution that risks persist, especially with inflation trending above 30 percent and the naira’s continued volatility. Investor behavior, they argue, will likely remain highly selective, focusing on companies with strong fundamentals, proven resilience, and consistent dividend payouts.

Foreign investors, who had slowed participation due to currency uncertainty, are also being watched closely. A more stable exchange rate regime could see increased portfolio inflows, which would add liquidity and further lift the market. The NGX has already signaled its optimism by enhancing digital platforms to attract both domestic and foreign participation, while regulators continue to emphasize transparency and accountability.

For retail investors, the latest market performance serves as both a reminder and an opportunity. The ₦115 billion gain highlights the potential of equities as a hedge against inflation, especially when invested in resilient sectors like banking and energy. Analysts encourage investors to diversify, remain cautious of speculative rallies, and focus on value-driven opportunities rather than chasing quick gains.

As the trading week closed, the mood was cautiously upbeat. The combined influence of stronger oil and banking stocks reaffirmed the central role of these sectors in Nigeria’s market stability. While macroeconomic challenges remain steep, the equities market continues to demonstrate capacity for rebounds, offering both institutional and retail investors avenues to grow wealth.

 

Ultimately, the ₦115 billion gain is not just a statistic but a reflection of renewed market confidence, however fragile. If sustained, it could set the stage for stronger performances in the final quarter of the year, as Nigeria’s capital market seeks to weather economic turbulence and maintain its relevance as a driver of growth and investor wealth.