Bullish Momentum Continues on NGX as MPR Hold and Strong Q2 Earnings Boost Investor Confidence

The Nigerian stock market maintained its upward trajectory last week, fueled by the Central Bank of Nigeria’s (CBN) decision to retain the Monetary Policy Rate (MPR) at 27.5% and the release of strong second quarter (Q2 2025) earnings from several listed companies. These developments triggered renewed positive sentiment across the market, encouraging investors to increase their exposure to equities amid a favorable macroeconomic backdrop.

Driven by broad-based buying across major sectors, the Nigerian Exchange (NGX) All Share Index (ASI) surged by 2.2%, closing the week at 134,452.93 points, up from 131,585.66 points. Market capitalization also saw a major jump, rising by over N1.8 trillion to settle at N85.055 trillion. Analysts noted that the earnings releases have given investors clearer insight into company performance and future prospects, prompting accumulation of low-, mid-, and high-cap stocks ahead of the Q2 reporting deadline.

Key contributors to the rally included strong performances from BUA Cement, which rose by 9.4%, Presco with a 22.5% gain, and Oando up by 18.9%. Other notable gainers were WAPCO and Dangote Sugar, which appreciated by 9.7% and 14.3%, respectively. Despite the market’s bullish performance, activity levels dipped sharply compared to the prior week, with trading volume and value down by 78.9% and 77.6% week-on-week.

Looking ahead, analysts at Cordros Capital expect the continuation of earnings season to further influence sentiment, alongside lower fixed-income yields which could drive more funds into equities. InvestData Consulting, on the other hand, anticipates mixed trading sessions driven by profit-taking, sector rotation, and cautious sentiment as investors digest more earnings reports and await dividend announcements from audited results.

Source: Vanguard