August 4, 2026/CSL Report
July 2026 in retrospect
- The equities market rebounded in July, gaining 6.9% month-on-month (m/m) to close at 245,283.68 points, partially reversing the 8.4% m/m decline recorded in June. The recovery was underpinned by broad-based buying interest, with the banking sector emerging as the standout performer, advancing roughly 22.1% during the month. The performance of the banking sector was largely driven by renewed investor interest in FIRSTHOLDCO (+131.1%), following strategic share acquisitions by the chairman as well as gains in ACCESSCORP (+19.5%), FIDELITYBK (+17.4%), and UBA (+15.9%), reflecting improved sentiment toward tier-1 and tier-2 lenders.
- Market breadth strengthened significantly in July, rising to 2.03x from 0.16x in June, signalling a marked improvement in underlying investor sentiment. The broader market participation was evidenced by 72 advancing stocks compared to 35 decliners, a notable turnaround from the previous month’s 16 advancers against 100 decliners. Consequently, year-to-date (YTD) return of the market advanced to approximately 57.6% in July from 47.4% the prior month.
- Trading activity also strengthened during the period, as average daily volume rose by 5.3% m/m to approximately 762.5 million units, while average daily value increased sharply by 47.3% m/m to ₦50.3 billion. This sharp divergence points to a shift toward higher-value transactions, consistent with the scale of gains recorded in large-cap banking tickers.
- Overall, July trading was characterised by strong rebound in banking counters and improving market breadth, underscoring a recovery from the June 2026 broad-based pullback.
August 2026 market prospects
- The equities market is expected to maintain its positive momentum in August, supported primarily by the ongoing H1 2026 earnings season and interim dividend declarations. We also expect investors to rotate into companies with resilient earnings growth, strong cash generation and attractive dividend yields, as buying interest remains concentrated in mid-to-large-cap stocks.
- Beyond earnings, market liquidity conditions are expected to remain supportive of equities as institutional investors rebalance portfolios for H2 2026. In addition, we anticipate strong participation from Pension Fund Administrators (PFAs), which should provide sustained demand for fundamentally strong stocks with attractive real return potential.
- On the external front, investors will remain expectant of Nigeria’s pending FTSE Russell Frontier Market reclassification, with a final decision expected by end-August. A delayed outcome may temper a near-term surge in foreign portfolio participation, though continued engagement of the NGX with FTSE Russell should keep sentiment constructive.
- Overall, we expect the NGX to remain broadly positive in August, underpinned by earnings catalysts, dividend expectations and sustained domestic liquidity, albeit with intermittent profit-taking after the recent rally.
August 2026 Top 10 Stock Picks
Click here to download full report: CSL Nigeria Monthly Stock Picks – August 2026