Banking Stocks Lift NGX as FirstHoldCo, UBA Rally Despite BUA Cement Selloff

The Nigerian Exchange (NGX) closed marginally lower on Thursday as investors rotated into banking stocks while taking profits in selected heavyweight industrial and consumer goods companies.

The NGX All-Share Index (ASI) slipped 0.09 percent to close at 242,145.61 points, while equity market capitalisation settled at ₦156.21 trillion.

Despite the modest decline, trading activity suggested that institutional investors remained active in the banking sector rather than exiting the market.

A total of 498.45 million shares valued at ₦34.87 billion were exchanged in 39,484 deals, representing lower turnover than the previous session but reflecting continued healthy market participation.

Banking Stocks Return to the Forefront

Financial stocks once again dominated investor attention as FirstHoldCo gained 9.96 percent to close at ₦87.25, while United Bank for Africa (UBA) advanced 7.93 percent to ₦44.25.

McNichols rose 8.00 percent, Veritas Kapital added 6.85 percent, while TAJ Bank led the gainers’ chart with a 10.56 percent appreciation.

The strong rebound in FirstHoldCo is particularly significant after recent profit-taking. The stock has quickly regained upward momentum, reinforcing the view that earlier weakness reflected temporary profit booking rather than a deterioration in investor confidence.

BUA Cement Limits Overall Market Gains

While banking stocks supported market sentiment, declines in several large-cap counters prevented the benchmark index from closing higher.

BUA Cement fell 9.99 percent, making it one of the session’s biggest drags on the ASI due to its substantial market capitalisation. Other notable decliners included Eunisell (-10.00%), Chemical & Allied Products (-9.61%), and Royal Exchange (-9.55%).

The performance suggests that selling pressure remained concentrated in a handful of heavyweight stocks rather than spreading across the broader market.

Institutional Liquidity Remains Concentrated in Banks

Trading activity continued to favour banking equities.

Japaul Gold led by volume with 77.66 million shares, followed by Access Holdings (41.16 million shares), FirstHoldCo (38.80 million shares), UBA (31.53 million shares) and Fidelity Bank (23.81 million shares).

However, FirstHoldCo generated the highest transaction value at ₦3.38 billion, ahead of UBA and Access Holdings, indicating that larger pools of capital remained concentrated in the stock.

Unlike the exceptional July 9 session, when trading was dominated by a single block transaction in FirstHoldCo, Thursday’s activity was distributed across several major banking stocks.

This points to broader institutional participation within the financial sector rather than isolated interest in one company.

Sector Rotation Defines the Session

The trading pattern reflects sector rotation instead of widespread selling.

Investors appeared to reduce exposure to selected industrial and consumer goods companies while increasing allocations to banking stocks, a trend that has become more evident over recent trading sessions.

The resilience of financial stocks helped cushion the market against declines in heavyweight counters and prevented a sharper fall in the benchmark index.

Fixed Income and ETF Markets Remain Stable

The bond market recorded little price movement during the session, suggesting that investors did not significantly shift capital into fixed-income securities.

Exchange-traded funds (ETFs) posted mixed but generally positive performances with GREENWETF leading gains, while VETBANK also edged higher.

Market Outlook

Thursday’s session reinforces the view that the Nigerian stock market remains in a healthy consolidation phase following its recent rally.

Although overall turnover moderated, institutional participation remains visible, particularly within the banking sector, where liquidity continues to dominate trading activity.

The swift recovery in FirstHoldCo and sustained demand for UBA, Access Holdings and Fidelity Bank indicate that investors remain constructive on financial stocks.

Going into the next trading session, attention is likely to remain on banking counters as investors assess whether renewed institutional buying can offset continued profit-taking in heavyweight industrial stocks.

A sustained improvement in market breadth and trading value would strengthen the case for the market’s broader upward trend to resume.