Nigerian Exchange Soars to N89.37trn as Investors Gain N4.3trn
The Nigerian Exchange (NGX) soared to N89.37 trillion on sustained 5-star rallies that have pushed key performance indicators to all-time high amidst second quarter of financial year 2025 earnings releases
The local bourse sustained its bullish momentum for the tenth consecutive week, driven by a continued influx of robust H1 2025 earnings results, resilient corporate fundamentals, and attractive dividend declarations, investment firm Cowry Asset Limited said.
Investor sentiment remained buoyant across key sectors, reinforcing expectations of a strong performance trajectory for the rest of the year. The All-Share Index (ASI) surged by 5.07% week-on-week to close at a new historic high of 141,263.05 points, while the market capitalisation of listed equities advanced by 5.08% to N89.37 trillion.
This resulted in N4.32 trillion in market gains as investors keep taking positions in some fundamentally sound companies, with some tickers rising to new record highs. Earnings, interim dividends, and of course fear of missing out (FOMO) will continue to fuel the rally in the Nigerian market, a Broadstreet stockbroker told MarketForces Africa.
Based on data obtained from the Nigerian stock market, the year-to-date return expanded to 37.25%, positioning the Nigerian bourse as one of Africa’s top-performing equity markets so far this year.
Market breadth closed significantly positive at 2.77x, with 86 stocks recording gains versus 31 decliners. The local bourse experienced broad improvement in activity levels, with total volume and value traded increasing by 31.6% and 33.8% w/w to 4.85 billion shares and N149.75 billion, respectively.
Trading details from the Nigerian Exchange cited by stockbrokers highlighted that the number of trades also rose 26.4% to 174,265 deals, underscoring renewed investor interest and confidence across the board.
Sector performance was broadly positive, with four of the six major sector indices posting gains. The Industrial Goods Index led the charge, rising by 10.12% week on week, driven by strong buy-side interest in DANGOTE CEMENT, BUA CEMENT, LAFARGE AFRICA, CAP, JULIUS BERGER, and UPDC.
The Banking Index followed with a 3.49% gain, spurred by positive sentiment in UBA, WEMABANK, ZENITHBANK, and FIDELITYBANK, as investors priced in expectations of healthy H1 results and interim dividend declarations.
The Consumer Goods Index also rose 2.72% on the back of rallies in DANGOTE SUGAR, NASCON, CADBURY, GUINNESS, and UACN, the latter of which led all gainers for the week.
Meanwhile, the Insurance (-1.22%) and Oil & Gas (-0.48%) sectors closed negative, dragged by declines in LASACO, GUINEA INSURANCE, SUNU ASSURANCE, ETERNA, and OANDO. UACN emerged as the best-performing stock of the week with a staggering 115.9% return, followed by ACADEMY (78.3%),
ABCTRANS (65.8%), EUNISELL (62.2%), and LAFARGE AFRICA (61.1%). On the flip side, LEGEND INTERNET (-20.0%), UPL (-16.3%), LASACO (-15.6%), GUINEA INSURANCE (-14.65%), and NNFM (-13.8%) topped the laggards’ chart.
In its note, Investment firm Cowry Asset Limited said it expects the bullish sentiment to persist in the near term, supported by undervaluation of the Nigerian market relative to African peers, improving macro fundamentals, and the expectation of interim dividend declarations by Tier-1 banks.
With major banks yet to release their earnings results for the first half of the year, investor positioning is likely to intensify in the coming sessions.
“We continue to advise investors to tilt their portfolios toward fundamentally strong stocks with consistent earnings power and potential for dividend income, especially in the banking, cement, and fast-moving consumer goods (FMCG) sectors,” Cowry Asset Limited said. #Nigerian Exchange Soars to N89.37trn as Investors Gain N4.3trn Energy Prices, FX Stability Drive Disinflation, Cardoso Says
