Nigerian stocks surge in select banks but market hides weakness as losers outnumber gainers 2.5:1
First HoldCo Plc led banking stocks with a 12.23% weekly gain to N145.40, while FCMB Group rose 13.10% to N12.95 and newly listed AVA Capital jumped 33.33% to N11.00, driving the NGX All-Share Index up 0.12% to 245,573.60 points and market capitalisation to N158.51 trillion. Despite these headline gains, market breadth remained sharply negative with only 26 stocks advancing against 63 declining, and 58 unchanged—showing gains concentrated in just a few heavyweight stocks. The Banking Index rose 2.33% but the Insurance Index fell 3.31%, with total trading volume up 4.69% to 5.359 billion shares while traded value plunged 65.64% to N139.05 billion, indicating lower-value transactions dominated. Top volume stocks were Japaul Gold, Fortis Global Insurance, and FCMB. Analysts warn the narrow rally reflects cautious sentiment as declining stocks continue to outnumber advancers throughout the week. With earnings releases upcoming, investors should consider whether to chase these concentrated bank gains or wait for broader market participation before allocating fresh capital.