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Nigeria’s equities market staged a remarkable comeback in July 2026, adding ₦11.11 trillion to investors’ wealth as renewed demand for banking stocks and other fundamentally strong companies reversed the heavy losses recorded in June.
The rally saw the Nigerian Exchange (NGX) recover strongly from the previous month’s sell-off, with sustained institutional buying and positive investor sentiment lifting market capitalisation to ₦158.33 trillion by the close of trading on July 31.
Market Rebounds Strongly After June Sell-Off
According to market data, the NGX gained back a significant portion of the more than ₦13 trillion wiped off investors’ portfolios during June, when widespread profit-taking dragged equities lower.
By the end of July, the benchmark NGX All-Share Index (ASI) had climbed 6.92%, closing at 245,283.68 points, up from 229,419.18 points recorded at the end of June.
Similarly, total market capitalisation rose from ₦147.22 trillion to ₦158.33 trillion, translating to an estimated ₦11.11 trillion increase in market value within the month.
On a year-to-date basis, the Nigerian stock market has now generated approximately ₦58.97 trillion in investor gains, with total market capitalisation expanding by more than 59% since the start of 2026.
Banking Sector Leads the Charge
The banking sector emerged as the clear driver of July’s recovery, buoyed by stronger earnings expectations, recapitalisation activities and increased institutional interest.
The NGX Banking Index surged 22.10%, making it the best-performing sector during the month.
Among the standout performers was First HoldCo Plc, whose share price jumped 131.13%, rising from ₦56.05 to ₦129.55 to become July’s top-performing stock.
Other large-cap counters also contributed significantly to the rally. Airtel Africa gained 21%, while HBM Nigeria, Dangote Sugar, and several banking stocks posted strong double-digit returns as investors rotated into fundamentally sound companies.
Broad-Based Gains Across Key Sectors
Beyond banking, several other sectors recorded positive performances during the month.
The Insurance Index advanced 9.29%, reflecting renewed buying interest in insurance stocks, while the Industrial Index gained 3.57%. The Oil and Gas Index also rose 3.21%, supported by appreciation in major energy companies.
The only notable underperformer was the Consumer Goods Index, which declined 4.11% as investors booked profits in several previously strong-performing consumer stocks. Meanwhile, the Commodity Index slipped marginally by 0.51%.
Blue-Chip Stocks Continue to Dominate Market Value
Despite the broad-based rally, market capitalisation remained heavily concentrated among a handful of large-cap companies.
Data showed that eight listed companies accounted for nearly 64% of the Nigerian Exchange’s total market value by the end of July.
Leading the pack was Airtel Africa, with a market capitalisation of approximately ₦21 trillion, followed by MTN Nigeria at ₦17.57 trillion and Dangote Cement at ₦17.45 trillion.
Other heavyweight contributors included BUA Foods, BUA Cement, Seplat Energy, First HoldCo, and HBM Nigeria, underscoring the dominant influence of blue-chip stocks on overall market performance.
Investor Confidence Remains Strong
Although the market closed the final trading session of July with a slight 0.03% decline, analysts noted that overall investor sentiment remained positive throughout the month.
The benchmark index reached an intra-month high of 247,984.55 points before mild profit-taking trimmed part of the gains toward month-end.
Market watchers attributed the sustained rally to stronger corporate earnings, portfolio rebalancing by institutional investors, and continued confidence in fundamentally sound companies despite macroeconomic challenges.
Oil & Gas Tops Year-to-Date Sector Performance
While banking dominated July’s performance, the Oil and Gas Index remains the best-performing sector so far in 2026, delivering a year-to-date return of approximately 96.3%.
The strong showing reflects sustained investor interest in energy stocks amid improved earnings and favourable industry developments, reinforcing the sector’s leadership position on the Exchange.
Outlook for the Market
The impressive July recovery has reinforced optimism around Nigeria’s equities market heading into the second half of the year.
Analysts believe continued earnings releases, banking recapitalisation efforts and selective institutional accumulation could sustain positive momentum in the coming months, although intermittent profit-taking is expected after the sharp gains recorded by several large-cap stocks.
For investors, July’s performance highlights the resilience of the Nigerian capital market, with banking stocks once again proving instrumental in driving market recovery and restoring investor confidence after June’s steep correction.
