The Nigerian equities market delivered a strong performance during the holiday-shortened week ending June 5, 2025, as the NGX All-Share Index (ASI) surged by 2.57% to close at 114,616.75 points. This impressive gain boosted market capitalisation by N1.81 trillion to N72.275 trillion. The rally was largely driven by renewed investor interest across multiple sectors including financial services, energy, telecoms, and consumer goods, reflecting a combination of early-month portfolio adjustments and improving economic sentiment.
Despite operating for only four days due to the Eid-el-Kabir holiday, market activity remained robust. A total of 3.214 billion shares valued at N76.348 billion exchanged hands in 64,156 deals. This, however, was lower than the previous week’s 3.794 billion shares worth N119.394 billion in 89,636 deals, suggesting investors adopted a more focused and selective approach, targeting specific high-performing stocks.
Cowry Asset Management attributed the market’s consistent upward movement to a mix of factors, including the start-of-month rebalancing and optimism from a recent positive PMI report. These factors, coupled with the ongoing earnings season, underpinned bullish sentiment. As a result, the year-to-date return for the NGX ASI climbed to 11.36%, reinforcing growing confidence in Nigeria’s equity market amidst global economic uncertainties.
Sector-wise, the Financial Services sector dominated with 71.96% of total turnover volume and 68.43% of value, led by heavy trading in Fidelity Bank, Legend Internet, and GTCO. The ICT and Consumer Goods sectors followed, also recording significant trading volumes. Notably, top gainers included Oando Plc, Lasaco Assurance, and Multiverse, while ABC Plc, Julius Berger, and Legend Internet Plc led the losers’ chart. Market breadth stayed positive, with more advancers than decliners.
Looking ahead, analysts expect the bullish momentum to continue, driven by expectations of more earnings releases and key macroeconomic updates, such as Nigeria’s Q1 2025 GDP report. However, they advise caution, noting that some investors may adopt a wait-and-see approach in the absence of new economic catalysts. Nonetheless, the overall outlook remains optimistic, with potential for further gains in the near term.
Source: The Sun