Nigerian equities recover N11.11trn in July on banking surge
The Nigerian stock market rebounded in July to erase most of June's losses, driven by a 22% rally in banking stocks that pushes the year-to-date market capitalization up nearly 60% to N158.33 trillion.
The Nigerian Stock Exchange added N11.11 trillion in July, reversing a steep N13 trillion slump from the previous month. The NGX All-Share Index closed July at 245,283.68 points, a 6.92% monthly gain that brought the year-to-date increase to 57.6%. Total market capitalization reached N158.33 trillion by month-end, representing a 59.32% increase from the N99.38 trillion recorded at the end of 2025.
Banking stocks powered the recovery, with the sector index surging 22.10% on expectations of stronger corporate earnings and ongoing recapitalization activities. First HoldCo Plc led the entire market, soaring 131.13% to close at N129.55. Other notable gains included HBM Nigeria Plc, which rose 17.10% to N363.00, and Airtel Africa, which climbed 21.00% to N5,801.40.
Despite July's focus on financials, oil and gas remains the dominant sector for 2026, posting a 96.3% year-to-date return. Industrial goods follow closely with an 85.44% gain, while the banking sector sits at 66.7%. This broad advance masked underlying weakness in consumer goods, which fell 4.11% in July as investors locked in profits amid valuation concerns.
The rally underscores the extreme concentration risk embedded within the Nigerian equity market. Just eight blue-chip stocks now control 63.98% of the exchange's total value, accounting for N101.29 trillion of the N158.33 trillion market capitalization. Airtel Africa alone represents N21 trillion of that total, followed by MTN Nigeria at N17.57 trillion and Dangote Cement at N17.45 trillion.
The benchmark index touched an intra-week high of 247,984.55 points before easing slightly lower on the final trading session. That marginal 0.03% decline on July 31 did little to derail the market's overall positive momentum.
Looking ahead to August, market participants are shifting their focus to upcoming half-year corporate earnings releases and dividend expectations. Trading sentiment will likely hinge on the pace of banking recapitalization and any fresh macroeconomic policy signals from the Central Bank of Nigeria.
