Investors Position for Q2 Earnings as NGX Market Capitalisation Surges by N377bn

The Nigerian Exchange (NGX) ended the first trading week of July 2025 on a bullish note, gaining N377.26 billion in market capitalisation to reach N76.34 trillion. The NGX All-Share Index (ASI) rose by 0.83% week-on-week to 120,989.66 points, reflecting growing investor optimism ahead of second quarter (Q2) and half-year (H1) earnings releases. This momentum is part of a larger trend, with the benchmark index’s year-to-date return standing at 17.55%.

Investor confidence was largely driven by portfolio rebalancing and a strategic focus on fundamentally strong stocks. Despite the delisting of Notore Chemical Industries Plc, the market saw a positive breadth with 77 gainers and 27 losers. Trading activity also spiked: volume increased by over 41% to 5.47 billion units, while value traded rose by 6.4% to N108.09 billion, indicating increased institutional and retail participation.

NEIMETH International Pharmaceuticals Plc led the gainers’ chart with a 60.5% weekly increase, closing at N5.94 per share. It was closely followed by Ellah Lakes Plc and International Breweries Plc, which gained 31.3% and 26.4% respectively. Other strong performers included CWG Plc, Champion Breweries Plc, Learn Africa Plc, and Beta Glass Plc—all posting double-digit gains that contributed to the market rally.

On the downside, Multiverse Mining and ABC Transport Plc were the worst performers, both dropping by 9.3%. Oando Plc, BUA Foods Plc, and DAAR Communications Plc also declined significantly. The NGX Industrial Goods Index was the only sectoral index to record a loss, dipping by 2.11% due to selling pressure in stocks like Julius Berger, Abbey Mortgage Bank, and Multiverse.

Looking ahead, analysts from Cowry Asset Management maintain a cautiously optimistic outlook. They advise investors to remain focused on fundamentally sound stocks with strong earnings projections, especially as the market reacts to upcoming Q2 and H1 earnings announcements. The strategy remains long-term: favouring companies with consistent dividends and robust growth potential amid ongoing market volatility.

Source: The sun