NGX Market Capitalisation Surges to ₦85.5tn on Investor Optimism and Strong Q2 Earnings

The Nigerian Exchange Limited (NGX) experienced significant growth in the first half of 2025, with its market capitalisation rising by ₦22.14tn to close at ₦85.46tn as of July 28. This 35.78% increase was fueled by renewed investor confidence, improving macroeconomic indicators, and strong corporate earnings. The All-Share Index also saw a robust year-to-date return of 31.02%, climbing from 103,180.14 to 135,166.51 points. The market rallied notably in Q2, reversing the subdued performance of Q1 attributed to tight monetary policy and high interest rates.

Throughout the first half, monthly data reflected a resilient and bullish trend despite intermittent volatility. After a modest Q1, market momentum picked up in late May and carried through to July. By June 30, market capitalisation had reached ₦75.95tn, and the pace accelerated in July with the market pushing past ₦85tn. Sector performance was broad-based, with significant gains across industrial goods, consumer goods, and financial services, reflecting heightened investor participation.

During the week ending July 28, NGX added ₦1.81tn in value, closing at ₦85.055tn, with improved trading activity across major sectors. Financial services led in both volume and value, followed by agriculture and oil & gas. Major equities like Access Holdings, UBA, and Japaul Gold accounted for over 20% of turnover. The All-Share Index appreciated by 2.18% during the week, while market breadth improved significantly, with more gainers than losers and stable performance across several indices.

Investor interest remained strong as earnings season progressed, with notable gainers such as The Initiates Plc, Academy Press, and Nigerian Enamelware posting double-digit weekly returns. Analysts from Merristem and Afrinvest credited the bullish sentiment to strong Q2 corporate results, stable FX, and ongoing capital raises in the banking sector. The industrial goods sector was particularly strong, buoyed by cement stocks and expectations of continued policy support.

Looking ahead, Afrinvest maintains an optimistic projection of a 30.4% gain for the NGX by the end of 2025, citing expected improvements in fiscal policy, FX stability, and investor-friendly reforms. Analysts believe Nigeria’s equities market is entering a favourable cycle, with potential capital inflows in H2 as fixed-income yields moderate and macroeconomic reforms take hold. While global risks remain, the current trajectory points to sustained bullish momentum, provided policy direction remains stable.

Source: Punch