The Nigerian Exchange Limited recorded a market capitalisation surge of ₦479 billion on Thursday, 8 August 2025, as strong investor appetite in the insurance and consumer goods sectors lifted the market to new highs.
The bullish trend saw the All-Share Index rise by 756.83 points or 0.52%, closing at 146,570.69. The performance extended the week’s overall gain to 4.8%, pushing the year-to-date return to 42.4%, underscoring sustained investor optimism in the equities market despite macroeconomic challenges.
At the close of trading, a total of 1.98 billion shares were exchanged across 35,282 deals, representing a 16% increase in trading volume compared with the previous day. However, market turnover dropped by 10% to ₦27 billion, suggesting a shift toward lower-priced stocks amid heightened activity.
The insurance sector led the rally, as stocks like AXA Mansard, Cornerstone Insurance, and AIICO Insurance gained the maximum 10%, reflecting renewed confidence in the sector. AXA Mansard closed at ₦13.31 per share, topping the gainers’ chart. The NGX Insurance Index rose sharply by 8.76%, while the Consumer Goods Index posted a 4.08% gain.
Major contributors in the consumer goods sector included Guinness Nigeria and University Press, which recorded price increases of 9.98% and 10%, respectively. The gains have been linked to strong earnings reports, resilient fundamentals, and improving consumer sentiment in the face of inflationary pressures.
On the flip side, Chams Plc led the laggards with a 9.94% drop to close at ₦2.90, followed by Austin Laz and Caverton Offshore Support Group, which lost 9.83% and 9.65%, respectively. UAC of Nigeria Plc declined by 9.44%, reflecting concerns over performance in the industrial goods segment.
In terms of trading volume, Linkage Assurance emerged top with over 372 million shares traded, followed by Prestige Assurance (249 million shares), Veritas Kapital Assurance (182 million shares), and Sterling Bank (121 million shares).
Analysts say the surge in insurance and consumer goods stocks stems from rising demand for dividend-yielding and defensive stocks, amid lingering economic uncertainties. The positive sentiment was further strengthened by recent regulatory developments in the insurance industry.
Earlier this week, President Bola Tinubu signed the Nigerian Insurance Industry Reform Bill into law, marking what the presidency described as “a transformative milestone” for the financial services sector.
“This reform will play a key role in achieving our target of a $1 trillion economy,” the President was quoted as saying during the signing at the State House.
Following the announcement, data from the Nigerian Exchange indicated that the volume of insurance stocks traded spiked by 299.15% on Wednesday, just 24 hours after the legislation was enacted.
According to the National Insurance Commission (NAICOM), the new Nigerian Insurance Industry Reform Act, 2025 is designed to modernise the regulatory framework, encourage capital injection, and expand insurance penetration. Industry stakeholders believe the law could significantly increase the sector’s contribution to Nigeria’s Gross Domestic Product (GDP).
