…as banking, insurance stocks lead broad-based Rally, year-to-date return hits 60.53%

The Nigerian equities market staged a strong recovery in the week ended, adding N4.67 trillion to investors’ wealth after a rough patch the week before, as broad-based buying across major sectors lifted the Nigerian Exchange Limited (NGX) All-Share Index by 2.78 per cent and pushed the market’s year-to-date return above 60 per cent, specifically to 60.53 per cent.

The All-Share Index gained 6,751.82 points during the week to close at 249,804.56 points, up from 243,052.74 points the previous week, and this lifted aggregate market capitalisation by 2.9 per cent to N162.157 trillion.

According to Nairametrics, this closing figure represents a record high, surpassing the previous all-time high of N161.8 trillion that was set on May 13, 2026. The recovery came after the market lost ground in the preceding week amid selling pressure, as investors repositioned their portfolios ahead of the N2.15 trillion Dangote Petroleum Refinery and Petrochemicals initial public offering, and this week’s bounce-back shows just how quickly sentiment can turn on the Exchange.

The rally was not confined to one or two counters but was broad-based, with all five major sectoral indices closing in the green during the week.
The Banking Index led the charge, rising 4.4 per cent, followed by the Insurance Index, which gained 3.8 per cent, while the Oil and Gas Index rose 3.7 per cent, the Industrial Goods Index advanced 3.1 per cent, and the Consumer Goods Index posted a more modest 0.5 per cent gain.
On the individual stock level, First HoldCo rose 17.7 per cent, Aradel Holdings gained 9.6 per cent, BUA Cement added 6.8 per cent, MTN Nigeria climbed 3.1 per cent, and Zenith Bank appreciated 2.4 per cent, reflecting renewed bargain hunting across the market and a reversal of the selling pressure witnessed the previous week.

Market breadth also confirmed the bullish mood during the week, as fifty-two equities appreciated compared with only nine in the preceding week, while the number of decliners fell sharply to 32 from 80, and another 63 equities remained unchanged compared with 58 previously. On the trading floor, activity presented a mixed picture, as investors traded 3.249 billion shares worth N237.986 billion in 287,919 deals, compared with 3.647 billion shares valued at N130.151 billion in 244,777 deals the preceding week, representing a 10.91 per cent decline in trading volume even as total traded value surged by 82.85 per cent, a divergence that suggests this week’s higher turnover was driven less by the number of shares changing hands and more by activity in higher-value stocks.

The Financial Services Industry remained the dominant force in the market, accounting for 2.581 billion shares worth N97.212 billion in 138,900 deals, contributing 79.43 per cent of total equity turnover volume and 40.85 per cent of turnover value, while the Services Industry ranked second with 131.102 million shares valued at N2.731 billion in 15,084 deals, and the ICT Industry followed with 114.622 million shares worth N21.541 billion in 29,152 deals.
Fidelity Bank, Sterling Financial Holdings and Mutual Benefits Assurance were the three most actively traded equities by volume during the week, jointly accounting for 1.229 billion shares worth N15.942 billion in 7,796 deals, representing 37.83 per cent of total equity turnover volume and 6.70 per cent of turnover value.

Trading in Equity Traded Products also remained active during the week, although volume declined, as a total of 1.844 million ETP units valued at N504.229 million changed hands in 5,684 deals, compared with 2.259 million units worth N451.246 million in 5,627 deals the previous week, while in the fixed income segment, investors traded 108,943 bond units valued at N112.766 million in 38 deals, compared with 115,145 units worth N123.330 million in 50 deals in the preceding week.

Based on Vetiva Securities’ latest weekly stock recommendation released this week, Zenith Bank is rated a buy with a target price of N154.00 against a current price of N128.40, while GTCO is also rated a buy, targeted at N160.00 from a current price of N130.00.
Dangote Cement is similarly rated a buy, with a target price of N1,252.59 against a current price of N1,050.00, and Guinness rounds off the buy-rated stocks with a target price of N449.16 from N384.80.
FBN Holdings, listed as HBMNG, is rated a hold with a target price of N392.18 against a current price of N345.20, while Stanbic IBTC, listed as NB, is also rated a hold, targeted at N82.03 from a current price of N75.20, meaning these two counters are not necessarily ones investors should rush into or out of this week. Presco, on the other hand, is the one stock flagged for caution, as Vetiva rates it a sell, with a target price of N1,808.48 against a current price that has already run ahead to N2,045.30, suggesting the stock may have gotten a bit ahead of its fundamentals for now.

Attention now shifts to a week packed with potential market-moving developments, including the outcome of the 307th meeting of the Monetary Policy Committee scheduled for September 21 and 22, which alone could set the tone for interest-rate expectations going forward.

Investors are also expected to be watching developments in the primary market auctions and the reinclusion of Nigerian equities in the FTSE Index, effective September 21, which could bring fresh international interest into the market, and these events are expected to influence portfolio positioning as investors assess interest-rate direction, liquidity conditions and the implications of renewed international index participation. After the sharp recovery recorded this week, the market enters the new week with investors balancing renewed bargain hunting against broader risk considerations as they reposition ahead of the final quarter of 2026.

As encouraging as this rebound looks, it is important to state clearly that none of these figures or recommendations guarantee a fixed or repeated increase going forward, as the market swung from losses to a N4.67 trillion gain within a week and can just as easily swing back, meaning every investor should weigh their own risk appetite, financial goals and time horizon before acting on any of the buy, hold or sell calls mentioned in this report, rather than treating them as guaranteed outcomes.