Nigerian Stocks Gain Ground as Bank Shares Rally; ASI Up 0.75%

Nigerian equities rose Tuesday, lifted by broad-based gains in financial and industrial stocks, with the benchmark index logging its strongest daily performance in over a week.

The Nigerian Exchange All Share Index advanced 0.75% to close at 121,247.96, as investors rotated into banking, oil and gas, and industrial names amid expectations of stable macroeconomic policy and improving corporate earnings in the second half of the year.

The day’s rally pushed market capitalization to ₦67.49 trillion ($45.4 billion), according to data from Afrinvest.

Bank Stocks Lead Advance

Gains were strongest in the banking sector, with the NGX Banking Index rising 1.73%, outperforming all other sub-indices. Zenith Bank Plc added ₦2.14 to close at ₦53.00, while United Bank for Africa Plc surged 4.5% to ₦34.85. GTCO Plc ticked up nearly 1% to ₦83.40.

Trading in bank shares was also heavy. Zenith Bank recorded the highest value turnover of the day at ₦3.45 billion, while UBA and Fidelity Bank each posted strong volume numbers.

Consumer, Oil and Industrial Stocks Also Higher

Other sectors saw more modest gains. The Industrial Goods Index rose 1.19%, while the Oil and Gas Index advanced 0.74%, led by a 9.22% gain in Eterna Plc. Shares of Honeywell Flour Mills Plc and Tantalizers Plc also posted outsized gains, rising 5.88% and 8.26%, respectively.

Seplat Energy, a heavyweight oil and gas firm, was unchanged at ₦5,460.00 but still attracted more than ₦1.7 billion in trades, signaling continued institutional interest.

Decliners Include Nestlé and Transcorp Power

Despite the upbeat session, some large-cap stocks declined. Nestlé Nigeria Plc fell ₦50.00, or 3.33%, to ₦1,450.00, reversing the previous day’s gains. Transcorp Power Plc dropped 3.47% to ₦32.00, while Japaul Gold and McNichols also recorded modest losses.

Market Breadth Positive

Overall, advancers outpaced decliners, and trading activity remained elevated. The market posted a total daily volume of 861.2 million units across 9,978 deals, with total turnover reaching ₦16.93 billion.

Analysts say the rally reflects investor optimism about exchange rate stability, declining inflation, and upcoming corporate earnings. “Bank stocks are leading as investors price in improved margins from higher interest rates and ongoing FX reforms,” said one portfolio manager at a Lagos-based investment firm. Investors will now be watching for second-quarter earnings guidance, especially from tier-1 banks and large industrials. A continued rally may depend on macroeconomic signals from the Central Bank of Nigeria and clarity on fiscal spending targets for the remainder of the year.

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