NGX Rebounds 0.98% as Banking Stocks Extend Rally, FirstHoldCo Hits N120.90

The Nigerian Exchange (NGX) rebounded strongly on Thursday as renewed buying in banking stocks erased the previous session’s losses and lifted the benchmark index close to a new record high.

The NGX All-Share Index (ASI) gained 0.98 percent to close at 247,831.40 points, recovering from Wednesday’s 0.50 percent decline.

Equity market capitalisation rose to N159.89 trillion, adding approximately N1.58 trillion in investor value.

Investors traded 782.35 million shares valued at N56.30 billion in 46,273 deals, indicating a return to more normal trading activity after Wednesday’s exceptional liquidity driven by a major insider transaction in FirstHoldCo.

Banking Stocks Lead Market Recovery

Banking stocks remained the primary engine of market performance as institutional investors continued to increase exposure to the sector.

Access Holdings appreciated 9.98 percent to close at N29.20, while FirstHoldCo gained 9.91 percent to settle at N120.90, extending one of the strongest rallies on the Nigerian Exchange this year.

The gains followed Wednesday’s disclosure that Calvados Global Services Limited, a company related to FirstHoldCo Chairman Olufemi Otedola, acquired 706.13 million ordinary shares valued at approximately N77.6 billion.

Although Thursday’s trading volume moderated significantly from the previous session, investor interest in the stock remained elevated.

FirstHoldCo Remains Most Active Stock

FirstHoldCo retained its position as the market’s most actively traded equity.

The stock recorded 106.40 million shares worth N12.49 billion, making it the largest contributor to market turnover for the second consecutive trading session.

GTCO followed with transactions valued at N9.73 billion, while Access Holdings generated N2.63 billion.

Together, FirstHoldCo, GTCO and Access Holdings accounted for nearly N25 billion, representing approximately 44 percent of the day’s total market turnover.

The concentration of liquidity in leading banking stocks indicates that institutional investors continue to favour the financial sector despite recent market volatility.

Consumer Stocks Recover

Selected consumer goods companies also participated in the market rebound.

Guinness Nigeria advanced 10.00 percent, emerging as one of the day’s strongest-performing equities following the sharp decline recorded in the previous session.

Zochis also gained 10.00 percent, reflecting improved buying interest beyond the banking sector.

The broader participation suggests Thursday’s rally was healthier than previous sessions that relied heavily on a handful of financial stocks.

Profit-Taking Remains Selective

Losses were largely confined to a small number of mid-cap companies.

Mecure Industries declined 9.96 percent, while FTN Cocoa Processors shed 9.16 percent.

Other notable losers included Omatek Ventures, Africa Prudential, and Cornerstone Insurance.

The absence of major banking stocks from the losers’ list reinforces the continued resilience of the financial sector.

ETF Market Extends Bullish Run

Exchange-traded funds maintained their positive momentum alongside equities.

NEWGOLD rose by N6,850, extending its recent rally, while STANBICETF30, MERVALUE, GREENWETF, and VETGRIF30 all closed higher.

The gains suggest investors continue to diversify portfolios while maintaining confidence in both equity and alternative investment products.

Meanwhile, activity in the bond market remained subdued, with the securities provided closing unchanged during the session.

Market Analysis

Thursday’s rebound confirms that Wednesday’s decline was largely a temporary pause rather than a shift in market direction.

Trading value eased to N56.30 billion from Wednesday’s exceptional N118.18 billion, indicating that the market has normalized following the large insider acquisition disclosed by FirstHoldCo.

More importantly, institutional demand remained firmly concentrated in banking stocks.

The combination of strong price appreciation in Access Holdings and FirstHoldCo, together with substantial trading values in GTCO, suggests investors continue to view Nigeria’s leading financial institutions as attractive opportunities.

Unlike Wednesday’s session, which was dominated by a single extraordinary transaction, Thursday’s gains were supported by broader institutional participation across multiple banking names and selected consumer stocks.

This diversification of buying activity provides a healthier foundation for the market’s ongoing rally.

Outlook

The Nigerian equity market remains in a constructive upward trend, with banking stocks continuing to attract the largest share of institutional capital.

The resilience of FirstHoldCo following the disclosure of the N77.6 billion insider acquisition and the continued strength in Access Holdings and GTCO indicate that investor confidence in the financial sector remains strong.

Going forward, market participants will closely monitor corporate earnings releases, additional insider dealing disclosures and institutional fund flows to determine whether the rally broadens further into other sectors or remains concentrated in Nigeria’s banking heavyweights.