As domestic stock market extended its positive momentum, closing higher for the seventh consecutive week, six listed Tier-1 banks added N1.52 trillion by market value in one week to contribute 14.09 per cent or N11.243 trillion to the overall N79.8 trillion market capitalisation of the Nigerian Exchange Limited (NGX) as of July 11, 2025.
Some of the six banks include: Ecobank Transnational Incorporated (ETI), Guaranty Trust Holding Plc (GTCO), United Bank for Africa Plc (UBA), Zenith Bank Plc, and Access Holdings Plc.
The stock market last week recorded a historic performance as the market capitalisation exceeded the N79trillion mark to close July 11, 2025, at N79.8 trillion.
In one week, the stock market gained N3.46 trillion from N76.339 trillion it opened for trading to hit N79.8 trillion.
Capital marketZ analysts have attributed the stock market’s significant growth in one week to a combination of factors that include: Low yield in government securities, strategic positioning ahead of the upcoming H1 2025 earnings season, strong price action in select small-and mid-cap stocks, as well as particular interest in banking stocks.
The six investigated Tier-1 banks also saw a rally in stock price, leading some to their highest peak since listing on the Nigerian Exchange Limited (NGX).
For instance, Zenith Bank reached a 52-week high when its stock closed on July 11, 2025, at N69.7 per share.
The stock price of Zenith Bank gained N12.20 per share from N57.50 per share it opened for trading, adding N501.05 billion in one week to bring its market capitalisation to N2.86 trillion.
UBA’s stock price on NGX closed July 11, 2025, at N43.55 per share to reach its 52-week high on the NGX.
The Pan-African financial institution’s stock price increased by N293.43 billion when its stock price added N7.15 per share to boost its market capitalisation to N1.79 trillion as of July 11, 2025.
Other investigated Tier-1 banks’ stocks recorded a significant rally last week over investors’ sentiment trading.
For example, GTCO, which listed on the London Stock Exchange (LSE) last week, saw its stock price at N94.10 per share, adding N10.9 per share from N83.2 per share it opened for trading.
The additional 2.29 billion ordinary shares of 50 kobo each listed raised GTCO’s market value by N397.04 billion in one week to bring its market capitalisation to N3.43 trillion as of July 11, 2025.
Also, as Access Holding’s stock price increased by N2.30 per share to N24.80 per share from N22.50 per share, its market value gained N122.63 billion in one week to bring its market capitalisation to N1.32 trillion.
Similarly, ETI’s stock price appreciated by N2.95 per share to close last week at N33.95 per share. This added N54.13 billion to the pan-African financial market’s value, increasing its market capitalisation to N622.97 billion as of July 11, 2025.
Capital market analysts had predicted that the stock market section of the NGX would maintain its positive momentum in the second half (H2) of 2025.
They noted that the stock market growth in H1 2025 was expected to be driven by improved macroeconomic sentiment, favourable market conditions, and increased investor interest.
According to them, the H2 2025 performance depends largely on the Central Bank of Nigeria’s (CBN) policy direction, clarity on banking recapitalisation efforts, inflation trends, and global commodity price movements. Meanwhile, investors remain focused on dividend declarations and the H1 2025 earnings season to shape market sentiment.
The stock market had delivered a strong performance in the first half of 2025, closing at 119,978.57 basis points, representing a year-to-date (YtD) gain of 16.57 per cent from its opening level of 102,926.40 basis points.
Consequently, the market capitalisation gained N13.2 trillion from N62.763 trillion at the beginning of the year to close at N75.96 trillion at the end of June 30, 2025.
On market performance for H2 2025, a group of analysts at Afrinvest Limited noted that, “looking ahead in H2, we maintain our market projections as most of the current market dynamics still align with our prognosis at the beginning of the year.
“For full year 2025, we still project a 30.4 per cent gain in our base-case scenario, driven by expectations of sustained pace of banking sector capital raise, fixed-income yield moderation, fiscal policy reforms & accelerated CAPEX spending, improved FX stability, and the possibility of some major corporate listings on the NGX.”
A group of analysts at Cardinalstone in its report titled ‘2025 Mid-Year Economic Outlook’ said, “improved macroeconomic sentiment, driven by faster-than-expected GDP growth, a downward trend in inflation, and early signs of currency stability, has set the stage for renewed investor confidence.
“Foreign Portfolio Investors (FPI) participation is also picking up, buoyed by greater FX clarity and improved capital repatriation mechanisms, and the recent M&A activities in the oil and gas sector signal stronger corporate earnings ahead, particularly in the upstream and services segments. These drivers reinforce our constructive stance on Nigerian equities going into the second half of the year.”
Kayode Tokede
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