Strong performances by tier-one lenders Zenith Bank and United Bank for Africa (UBA) provided a boost to the Nigerian stock market last week, helping offset losses in other sectors and mitigating a broader market decline. The resilience of these banking giants contributed to a positive close for the domestic bourse during the holiday-shortened trading week.

The All-Share Index (ASI) gained 0.99 percent, closing at 102,133.30 points by the end of the week. Gains recorded in MTNN (10.54 percent week-on-week), Zenith Bank (0.22 percent w/w), and UBA (2.37 percent w/w) counterbalanced declines in ARADEL (-9.64 percent w/w) and OANDO (-3.09 percent w/w). Consequently, the year-to-date (YTD) return improved to 36.59 percent, while the market capitalization rose by ?608.74 billion, closing the week at ?61.91 trillion.

Despite the week’s overall positive performance, the day’s trading session saw a marginal dip as the ASI fell by 5 basis points (bps). Declines in GTCO (-1.64 percent), UBA (-4.03 percent), and ACCESSCORP (-2.83 percent) outweighed gains recorded by FBN Holdings (0.72 percent), OANDO (2.36 percent), and Stanbic IBTC (1.69 percent), leading to a subdued market close.

Market activity showed a decline in turnover, with the value of transactions falling by 4.24 percent compared to the previous session. A total of 451.73 million shares, valued at ?17.49 billion, were traded in 12,551 deals. UBA (-4.03 percent) led the volume chart with 41.73 million shares exchanged, while SEPLAT accounted for the highest value of transactions, recording deals worth ?3.01 billion.

The market breadth closed on a positive note, with a ratio of 2.41 advancing stocks to every declining stock. Universal Procurement Logistics (UPL) topped the gainers’ list with a 10.00 percent increase, leading 40 other advancing equities. On the flip side, Honeywell Flour Mills (HONYFLOUR) led the laggards with a 9.09 percent loss, followed by 16 other decliners.

The banking sector remained a key driver of the market’s resilience, with Zenith Bank and UBA maintaining investor confidence despite mixed performance across other sectors. MTNN also contributed significantly to the week’s gains, bolstering the telecoms sector. However, weaknesses in the oil and gas sector, highlighted by declines in ARADEL and OANDO, partially eroded the gains.

Market analysts suggest that the Nigerian equities market could see more mixed performances in the coming weeks, as investors continue to weigh economic uncertainties and sector-specific fundamentals. While the robust gains in key banking stocks and telecoms provide optimism, pressures in the oil and gas sector and sporadic sell-offs could influence overall market direction.

With the year-to-date return at an impressive 36.59 percent, the Nigerian stock market remains a key focus for investors. However, sustained momentum will depend on positive corporate earnings, stability in macroeconomic indicators, and improved investor sentiment across all sectors.

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