Nigerian Stock Market Surges by N1.81 Trillion in One Week Amid Earnings Season and Yield Drop
The Nigerian stock market maintained its bullish run last week, appreciating by N1.81 trillion as investors responded positively to half-year (H1) 2025 earnings reports and declining Treasury bill yields. The market rally was also driven by expectations of lower interest rates, especially after the Central Bank’s Monetary Policy Committee (MPC) decided to hold the Monetary Policy Rate (MPR) steady at 27.5%. The All-Share Index (ASI) rose by 2.18% week-on-week to close at 134,452.93 points, pushing the month-to-date and year-to-date returns to +12.1% and +30.6%, respectively.
Sectoral performance reflected broad-based investor optimism. The NGX Industrial Goods Index led sectoral gains with a 4.7% increase, followed by the Insurance Index (+3.1%), Consumer Goods Index (+2.8%), Banking Index (+1.8%), and Oil & Gas Index (+0.9%). Market breadth was positive, with 60 stocks gaining and 43 losing value. Top performers included The Initiates Plc, Academy Press, and Nigerian Enamelware, while Secure Electronic Technology, Omatek Ventures, and Meyer led the laggards.
Trading activity slowed slightly compared to the previous week. A total of 3.691 billion shares valued at N112.261 billion were exchanged in 138,250 deals, down from 17.498 billion shares worth N500.762 billion traded in 142,082 deals the week before. Despite this, the market capitalization closed the week at N85.055 trillion, reflecting renewed investor confidence in equities amid declining returns from fixed-income investments.
Analysts remain cautiously optimistic about the near-term outlook. Firms such as Cowry Asset Management and Afrin vest predict a mixed but largely positive performance driven by the ongoing release of Q2 earnings, end-of-month window dressing, and a strategic shift toward fundamentally strong stocks. United Capital and Cordros Research also anticipate sustained gains, particularly in companies with solid FX exposure, cost management, and dividend prospects, even as profit-taking and NTB auctions may temper some momentum.
Source: This day