Banking and Oil Stocks Propel NGX Market Value by N459bn Surge

Nigeria’s equities market resumed its bullish momentum on Friday as gains in the banking and oil & gas sectors lifted the Nigerian Exchange Limited (NGX) market capitalization by ₦459 billion, underscoring renewed investor confidence in key sectors of the economy.

The market rally was largely driven by price appreciation in leading banking and energy stocks such as Access Holdings, Guaranty Trust Holding Company (GTCO), Zenith Bank, and Seplat Energy. The strong performance of these blue-chip equities helped offset losses in other sectors and boosted overall market sentiment.

According to trading data from the NGX, the All-Share Index (ASI) advanced by 0.83%, closing at 101,412.56 points, compared to the previous session’s 100,571.35 points. The market capitalization similarly rose from ₦56.783 trillion to ₦57.242 trillion, marking a significant gain of ₦459 billion in a single trading day.

Analysts attributed the positive sentiment to renewed investor interest in financial and oil stocks following the recent stability in the foreign exchange (FX) market and increased global oil prices, which have brightened the earnings outlook for local energy firms.

The banking sector led the rally, supported by robust third-quarter performance expectations, improved liquidity, and optimism about the Central Bank of Nigeria’s (CBN) monetary policy direction. Tier-one banks, in particular, have continued to attract buying interest from institutional investors amid strong earnings fundamentals and dividend prospects.

GTCO gained 5.12% to close at ₦48.50 per share, while Zenith Bank appreciated by 4.7% to ₦42.20. Access Holdings also saw a 3.9% increase to close at ₦18.60. The positive performance in the banking sector accounted for a substantial portion of the day’s total market gain.

In the oil and gas sector, Seplat Energy rose by 2.5% to close at ₦3,200 per share, following a rebound in global oil prices which hovered around $88 per barrel. The upward trend in oil prices, driven by strong demand from Asia and supply concerns from the Middle East, boosted investor appetite for energy stocks.

Market activity also improved as investors executed higher volume trades, reflecting growing confidence in the equities market. Total traded volume stood at 434.72 million shares, valued at ₦9.27 billion, and exchanged in 7,312 deals. This marked an increase from the 378.61 million shares worth ₦8.15 billion traded in the previous session.

FBN Holdings topped the activity chart with 62.18 million shares worth ₦1.63 billion, followed by Access Holdings with 59.21 million shares valued at ₦1.09 billion, and UBA with 48.55 million shares valued at ₦1.23 billion. These three stocks collectively accounted for a large portion of the day’s trading volume.

Meanwhile, market breadth closed positive as 39 gainers emerged against 21 losers, indicating strong bullish sentiment across major sectors. Among the top gainers were Transcorp (+9.87%), Jaiz Bank (+9.67%), Unity Bank (+8.90%), and Fidelity Bank (+7.43%). On the other hand, stocks such as Ikeja Hotel (-8.12%), Japaul Gold (-7.05%), and Champion Breweries (-6.20%) recorded declines due to profit-taking.

Reacting to the development, analysts at CardinalStone Securities noted that the rebound in banking and oil stocks suggests that investors are positioning ahead of the upcoming quarterly earnings season. “The market’s recovery reflects increased optimism about corporate earnings, particularly from banks and energy firms that are expected to benefit from FX reforms, rising interest rates, and elevated oil prices,” the firm said.

The analysts added that the consistent inflow of foreign portfolio investors (FPIs) into Nigerian stocks is another major driver of the market rally. They explained that recent reforms by the CBN, such as improved dollar liquidity and streamlined FX policies, have rekindled investor confidence and made the market more attractive.

Similarly, Vetiva Capital Management projected that the positive momentum could persist in the coming week, supported by sustained investor interest in fundamentally strong stocks. The firm, however, cautioned that some profit-taking activities may occur as investors lock in gains from recent rallies.

“The performance of the market in the near term will depend on macroeconomic indicators, particularly inflation data, exchange rate stability, and crude oil performance. However, the fundamentals of the banking and energy sectors remain solid, and we expect these sectors to continue driving gains in the short term,” Vetiva analysts said.

From a broader economic perspective, the market’s resurgence comes amid Nigeria’s ongoing fiscal and monetary reforms aimed at restoring economic stability. The CBN’s efforts to curb inflation and stabilize the naira have contributed to improved investor sentiment in the equities space.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, recently reaffirmed that the government remains committed to fostering a stable macroeconomic environment to attract both local and foreign investments. He emphasized that the government’s fiscal consolidation efforts, including targeted spending and revenue reforms, are expected to boost investor confidence and strengthen market fundamentals.

Market experts believe that as the earnings season approaches, investors will continue to favour sectors with strong balance sheets and dividend-paying potential. The banking, oil and gas, and consumer goods sectors are projected to remain at the forefront of market performance through the fourth quarter of 2025.

Meanwhile, some traders have urged the Securities and Exchange Commission (SEC) and the NGX to sustain investor education and transparency initiatives to attract more participation from retail investors, who remain underrepresented in the market.

As trading resumes next week, market watchers will be keeping an eye on key economic indicators such as inflation figures, oil price trends, and corporate earnings disclosures. If the current positive sentiment persists, the NGX could consolidate further gains and close the month on a strong note.

 

In summary, Friday’s ₦459 billion market capitalization surge underscores renewed optimism in the Nigerian equities market, driven primarily by robust performance in the banking and oil sectors. With improved macroeconomic outlook, investor confidence, and supportive government reforms, analysts believe the NGX could maintain its upward trajectory in the weeks ahead.