Nigerian Banking Stocks Power Market Gains as Blue-Chips Stall

Nigerian equities closed marginally higher on Tuesday, with the NGX All-Share Index inching up by 0.2% to 105,931.16, lifted primarily by renewed investor interest in tier-1 banking stocks.

The NGX Banking Index rose 1.4%, driven by strong performances from UBA (+6.1%), Zenith Bank (+5.9%), and GTCO (+1.2%). These gains underscore continued investor confidence in the resilience of leading banks amid steady net interest income and growing digital revenue streams.

Trading activity remained concentrated in the financial sector, with GTCO, AccessCorp, and UBA accounting for a significant portion of market turnover. Daily value traded climbed to ₦25.3 billion across 7,733 deals, suggesting healthy participation across both institutional and retail segments.

In contrast, heavyweight consumer and industrial names—such as Nestlé, Unilever, and Dangote Cement—closed unchanged, with the NGX Consumer Goods and Industrial indices recording flat performance. The lack of momentum in these traditionally defensive stocks may indicate investor caution. It appears that many market participants are waiting for further signals, particularly corporate earnings updates for Q1 or H1 2025, and more clarity on macroeconomic direction.

While recent reforms and policy adjustments reflect a commitment to long-term fiscal stability, some investors may be adopting a wait-and-see approach as they assess the implications of evolving exchange rate dynamics and ongoing discussions around fuel subsidy reforms. In this context, the phrase “earnings clarity and policy direction” captures the sense of measured optimism among investors who are encouraged by structural improvements but remain attentive to short-term signals.

Mid-cap and retail-favored stocks such as ABCTRANS (+9.9%) and Eterna (+10.6%) also saw outsized gains, highlighting continued interest in tactical opportunities across the broader market.