Equity Investors Position ahead of H1 26: Earnings Releases

• As Buy sentiments intensifies

BY BONNY AMADI

The NGX equity investors are currently positioning for H1 2026 corporate earnings releases as expressed in the week ended July 17.

However, in the new week, it is expected the market is likely to trade with a mixed but Cautious optimism, as investors position ahead of likely interim dividend declarations.

Meanwhile, the NGX equities market closed the week on a mixed note, as varying levels of buying interest across major counters shaped overall investor sentiment.

The benchmark NGX All-Share Index (ASI) declined by 0.14% week-on-week to close at 243,462.13 points.

Despite the marginal decline in the index, market capitalization increased by approximately N612 billion to N157.06 trillion, driven by the additional listing of 13.812 billion ordinary shares of Sterling bank.

Consequently, the market’s year-to-date return moderated slightly to 56.45%.

Market breadth remained positive, with 43 gainers against 34 losers, resulting in a market breadth ratio of 1.26x.

This reflects sustained buying interest across a broad range of stocks, as advancing equities continued to outnumber decliners during the week.

Trading activity, however, softened, indicating relatively lower investor participation.

The number of deals, trading volume, and transaction value declined by 10.01%, 22.73%, and 17.24% week-on-week, respectively.

Overall, investors traded 2.82 billion shares valued at N182.78 billion across 227,002 deals.

Sectoral performance was mixed during the week, with the Banking, Consumer Goods, and Insurance indices posting gains, while the Industrial Goods and Oil & Gas sectors closed lower.

The Banking Index emerged as the week’s top performer, advancing 9.30% on renewed investor demand for banking stocks, particularly FIRSTHOLDCO and FIDELITYBK.

The Consumer Goods Index followed, appreciating 6.65%, driven by sustained buying interest in MCNICHOLS and VITAFOAM.

Similarly, the Insurance Index gained 0.25%, supported by price appreciation in WAPIC, VERITASKAP, and CUSTODIAN.

Conversely, the Industrial Goods Index led the laggards, declining 6.26% following significant profit-taking in BUACEMENT and CAP.

The Oil & Gas Index also retreated by 0.79%, pressured by sell-offs in JAPAULGOLD and OANDO.

Meanwhile, the Commodity index closed the week unchanged. On the gainers’ chart, FIRSTHOLDCO led the market with a 38.7% weekly appreciation, followed by TIP (+27.2%), FIDELITYBK (+15.0%), LEGENDINT (+14.4%), and UCAP (+11.0%).

These gains were supported by renewed buying interest across selected large-, mid-, and small-cap stocks. Conversely, BUACEMENT topped the losers’ chart after shedding 19.0%, followed by REDSTAREX (-18.5%), JAIZBANK (-15.3%), CILEASING (- 13.3%), and PZ (-10.1%).

The declines were largely driven by profit-taking activities and sustained selling pressure in these counters.

Looking ahead, this new week, it is expected the market is likely to trade with a mixed but cautiously optimistic bias, as investors position ahead of corporate earnings releases.

While profit-taking may persist following the market’s strong year-to-date performance, selective buying in fundamentally sound stocks, particularly within the banking sector—is expected to support market sentiment.