By Chukwuma Umeorah
The Nigerian Exchange Limited (NGX) sustained its bullish momentum for the seventh consecutive time into the second week of July, recording a N3.46 trillion gain in market capitalisation driven largely by strong rallies in Tier-1 banking stocks. Notably, United Bank for Africa (UBA), Zenith Bank Plc, and Guaranty Trust Holding Company Plc (GTCO) rose to their 52-week highs, reinforcing investor confidence ahead of the H1 2025 earnings season.
For the week ended July 11, 2025, the NGX All-Share Index (ASI) appreciated by 4.26 per cent week-on-week to close at 126,149.59 basis points, while market capitalisation rose by N3.46 trillion, or 4.54 per cent, from N76.339 trillion to an all-time high of N79.803 trillion.
Notably, the NGX Banking Index soared by 12.49 per cent, the highest weekly gain among all indices, as investors took position in major lenders expected to report strong half-year results. The NGX AFR Bank Value Index followed with a 14.98 per cent weekly increase, while the NGX Premium Index gained 8.14 per cent.
Among the Tier-1 lenders, Zenith Bank Plc led with a sharp price appreciation. The bank’s stock rose by N12.20 per share to close at N69.70, up from N57.50 the previous week. This rally pushed its market capitalisation up by N501.05 billion, closing the week at N2.86 trillion, a new 52-week high.
UBA also touched a 52-week high as its shares closed at N43.55, adding N7.15 per share from N36.40 the previous week. The Pan-African bank’s market capitalisation jumped by N293.43 billion to N1.79 trillion.
Guaranty Trust Holding Company Plc (GTCO) witnessed a historic market reaction following its dual listing on the Nigerian Exchange and the London Stock Exchange (LSE). Its stock price climbed from N83.20 to N94.10 per share, a gain of N10.90. The listing of an additional 2.29 billion shares from its public offer at N70.00 per share further boosted investor confidence, bringing its total market value to N3.43 trillion representing a N397.04 billion gain in one week.
Access Holdings Plc, another key player in the banking sector, also recorded significant growth. Its stock rose by N2.30 per share to N24.80, up from N22.50, with a corresponding N122.63 billion increase in market value to close at N1.32 trillion.
Ecobank Transnational Incorporated (ETI) joined the rally, closing the week at N33.95 per share, up from N31.00. The bank added N54.13 billion in market capitalisation to reach N622.97 billion.
In total, the six tracked Tier-1 banks collectively added N1.52 trillion to the NGX, accounting for 14.09 per cent or N11.243 trillion of the entire market capitalisation by the close of trading on July 11, 2025.
Commenting on the rally, analysts attributed the impressive performance to a mix of positive sentiments including the low yield environment in fixed income markets, clarity on macroeconomic policies, and expectations of impressive earnings results.
“The market continues to be buoyed by strong investor interest in fundamentally sound stocks, particularly in the financial services sector,” said analysts at Afrinvest Limited. “For full year 2025, we maintain our projection of a 30.4 per cent market gain in our base-case scenario, driven by sustained capital raise by banks, moderation in fixed-income yields, fiscal reforms, and improved FX stability.”
They added, “The likelihood of additional corporate listings and ongoing recapitalisation efforts in the banking sector are likely to sustain the rally into the second half of the year.”
Similarly, analysts at CardinalStone Partners in their mid-year outlook noted that improving macroeconomic indicators such as faster-than-expected GDP growth, easing inflation, and currency stability were reinforcing investor confidence.
“The return of foreign portfolio investors, thanks to improved FX repatriation and transparency, is another critical factor supporting the rally. We also expect stronger earnings, especially from the oil and gas upstream segment, following recent M&A deals,” they said.
Beyond the blue-chip rally, overall market activity remained robust. Weekly trading volume stood at 5.39 billion shares valued at N107.81 billion, executed in 134,390 deals. Although this represents a slight decline from the previous week’s 5.47 billion shares and N108.10 billion, it signals sustained interest across multiple sectors.
The Financial Services Industry continued to dominate the activity chart, accounting for 3.02 billion shares valued at N56.24 billion traded in 55,574 deals representing 56.00 per cent and 52.17 per cent of the total equity turnover volume and value respectively.
Access Holdings Plc, Japaul Gold & Ventures Plc, and AIICO Insurance Plc emerged as the most traded stocks by volume, jointly accounting for 1.396 billion shares worth N15.835 billion in 12,828 deals.
Out of the 128 stocks traded during the week, 90 equities appreciated, 16 declined, and 41 remained unchanged. This compares favourably to the previous week’s 78 gainers, 20 losers, and 49 unchanged.
Leading the top gainers list were FTN Cocoa Processors Plc adding 60.60 per cent, Red Star Express Plc gained 60.57 per cent and Omatek Ventures Plc added 60.44 per cent.
On the flip side, Legend Internet Plc lost 12.50 per cent, International Energy Insurance Plc down by 6.7 per cent, and Oando Plc shed 6.09 per cent to top the losers chart for the week under review.
Despite the upbeat performance across most sectors, the NGX Oil & Gas Index was the lone decliner, down 0.72 per cent. All other indices closed in the green, led by the NGX Insurance Index (+13.83 per cent), NGX MERI Value Index (+12.49 per cent), and NGX AFR Bank Value Index (+14.98 per cent).
Market watchers say the trajectory of the market will be influenced by policy direction from the Central Bank of Nigeria (CBN), clarity on the ongoing banking recapitalisation, inflation trends, and global commodity price movements. Nonetheless, the focus remains on corporate earnings and dividend declarations as investors seek value in the current market environment.
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