By David Akinmola
The Nigerian equities market rebounded strongly on Tuesday as investors gained N1.52 trillion, driven largely by renewed buying interest in banking stocks, particularly First HoldCo Plc and Guaranty Trust Holding Company (GTCO), which spearheaded the recovery across the FUGAZ banking group.
At the close of trading, the market capitalisation of listed equities rose by N1.52 trillion to N83.65 trillion from N82.13 trillion recorded the previous day. Similarly, the All-Share Index (ASI) advanced by 2,394.53 points, representing a gain of 1.9 per cent, to close at 128,367.42 points from 125,972.89 points.
Market analysts attributed the rebound to bargain hunting in fundamentally strong banking stocks following recent price corrections, as investors repositioned ahead of half-year earnings releases and interim dividend declarations.
The rally was led by First HoldCo and GTCO, which recorded significant price appreciation, while other tier-one lenders under the FUGAZ category—comprising First HoldCo, UBA, Zenith Bank, Access Holdings and GTCO—also attracted strong investor interest.
As a result, the year-to-date return of the benchmark index improved, reinforcing positive market sentiment despite concerns over elevated interest rates and inflationary pressures.
Market breadth closed positive, with gainers outnumbering losers. Several banking, industrial and consumer goods stocks posted appreciable gains, reflecting broad-based buying across key sectors of the market.
Trading activity also improved as investors exchanged billions of shares valued at several billions of naira in thousands of deals, underscoring renewed confidence in the domestic bourse.
Analysts said the sustained interest in banking counters reflects investors’ expectations of stronger corporate earnings, robust capital positions and the potential benefits of ongoing economic reforms.
They added that the market may maintain its positive momentum in the near term as institutional and retail investors continue to take positions in undervalued stocks with strong fundamentals.
However, market operators cautioned that profit-taking activities could moderate gains in subsequent sessions, even as the overall outlook for equities remains positive amid improving investor appetite for risk assets.
