The Nigerian Exchange (NGX) has reached an impressive market capitalization of N89.37 trillion, buoyed by a sustained bullish rally that has propelled key performance indicators to historic highs amid the ongoing release of second-quarter financial results for the fiscal year 2025.
The local bourse has maintained its upward momentum for the tenth consecutive week, driven by a steady influx of robust half-year earnings results, resilient corporate fundamentals, and attractive dividend declarations, according to investment firm Cowry Asset Limited.
Investor sentiment remains optimistic across key sectors, reinforcing expectations for a strong performance trajectory for the remainder of the year. The All-Share Index (ASI) surged by 5.07% week-on-week, closing at a record high of 141,263.05 points, while the market capitalization of listed equities advanced by 5.08%, resulting in an impressive N4.32 trillion in market gains. Investors continue to take positions in fundamentally sound companies, with several stocks reaching new record highs. Earnings, interim dividends, and the fear of missing out (FOMO) are expected to continue fueling the rally in the Nigerian market, as noted by a Broadstreet stockbroker in comments to MarketForces Africa.
Based on data from the Nigerian stock market, the year-to-date return has expanded to 37.25%, positioning the Nigerian bourse as one of Africa’s top-performing equity markets this year.
Market breadth closed significantly positive at 2.77x, with 86 stocks recording gains compared to 31 decliners. The local bourse experienced a broad improvement in activity levels, with total volume and value traded increasing by 31.6% and 33.8% week-on-week to 4.85 billion shares and N149.75 billion, respectively.
Trading details from the Nigerian Exchange, as cited by stockbrokers, highlighted a 26.4% rise in the number of trades, reaching 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 major companies such as 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 half-year results and interim dividend declarations.
The Consumer Goods Index also rose by 2.72%, supported by rallies in DANGOTE SUGAR, NASCON, CADBURY, GUINNESS, and UACN, the latter of which emerged as the best-performing stock of the week with a staggering 115.9% return. Other notable gainers included ACADEMY (78.3%), ABCTRANS (65.8%), EUNISELL (62.2%), and LAFARGE AFRICA (61.1%). Conversely, the Insurance (-1.22%) and Oil & Gas (-0.48%) sectors closed negative, weighed down by declines in LASACO, GUINEA INSURANCE, SUNU ASSURANCE, ETERNA, and OANDO.
Investment firm Cowry Asset Limited anticipates that the bullish sentiment will persist in the near term, supported by the undervaluation of the Nigerian market relative to its African peers, improving macroeconomic fundamentals, and the expectation of interim dividend declarations by Tier-1 banks. As major banks have 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 stated.
