The Nigerian stock market extended its bullish run last week, driven by increased investor confidence and seasonal factors like the “January effect,” which has historically influenced market trends. Domestic and foreign investors channeled higher inflows into key sectors, resulting in a surge in buying activity. Several companies, including Trans-Nationwide Express, NEM Insurance, and Custodian Investment Plc, released earnings forecasts for Q1 and Q3 2025, while Seplat announced the completion of MPNU’s acquisition, and AccessCorp disclosed its agreement to acquire South Africa’s Bidvest Bank. These developments underpinned the market’s upward trajectory.
Key stocks, such as MTN Nigeria, Oando, and Conoil, played significant roles in driving market performance, posting weekly gains of 3.5%, 9.5%, and 33.5%, respectively. The NGX All Share Index (ASI) rose by 1,000 points to close at 99,210.75, while the Year-to-Date (YTD) return reached an impressive 32.9%. Despite the positive price movements, trading volume and value declined by 30.1% and 43.4%, respectively, reflecting cautious activity. Sectoral indices showed a largely positive trend, with the Oil & Gas and Insurance indices posting notable gains, while the Industrial Goods Index emerged as the only laggard.
Market analysts predict choppy yet bullish trading in the coming weeks as investors balance profit-taking with strategic positioning in fundamentally strong stocks. Portfolio rebalancing and sector rotation are expected to remain dominant themes, with smart money taking advantage of corrections to invest in undervalued assets. While global and domestic trends continue to shape market dynamics, experts advise investors to capitalize on price pullbacks for long-term gains amid anticipated volatility.