Onome Amuge
The Nigerian equities market concluded a historic week on Friday, adding N2.84 trillion in value to its market capitalisation and vaulting to new all-time highs. The jump, a testament to robust investor confidence, occurred even as the market’s 26-day bullish streak was snapped by a profit-taking sell-off in the final trading session.
The benchmark NGX All-Share Index (ASI) advanced by 3.18 per cent week-on-week, closing at an unprecedented 145,754.91 points. The rally pushed the market capitalisation to an eye-watering N92.21 trillion, bringing the year-to-date return to a blistering 41.61 per cent. This performance cements the Nigerian exchange as one of the most profitable investment destinations globally in 2025.
The primary catalyst for this latest leg of the market’s ascent was the official signing of the Nigerian Insurance Act, 2025, into law. This landmark legislation, which mandates a substantial increase in minimum capital requirements for insurance companies, ignited a flurry of buying activity and a fundamental re-evaluation of the sector’s growth potential. As investors scrambled to reposition their portfolios in anticipation of mergers, acquisitions, and a stronger, more resilient industry, the bullish momentum radiated across other key sectors.
The passage of the new Insurance Act, signed by President Bola Ahmed Tinubu, has been hailed by market participants as a game-changer for a sector long considered dormant. The law’s new capital thresholds, particularly the 400 per cent increase for composite insurers to N25 billion, have set the stage for an industry-wide consolidation. This prospect has created a potent narrative of a future dominated by fewer, but more robust, players with enhanced capacity and regulatory stability.
This optimism manifested in an explosive rally, with the insurance sector index rising 41 per cent week-on-week. It was a clear signal that the market is now pricing in the transformative impact of the reform, anticipating a more disciplined and profitable industry.
“The new Insurance Act has been the primary market mover this week,” said Tunde Okunade, a senior research analyst at a Lagos-based brokerage firm. “It has single-handedly injected a new layer of excitement and opportunity into a sector that was previously viewed as a laggard. The market is now pricing in the potential for a wave of consolidation that will create a few, but much stronger, players who can truly compete and deliver value. This isn’t just a rally; it’s a fundamental re-rating of the entire industry,” he added.
The momentum of the insurance rally propelled several companies to the top of the gainers’ chart. Mutual Benefits Assurance Plc led the pack with a 60.4 per cent increase, its stock soaring as investors bet on its ability to meet the new regulatory demands. Similarly, AIICO Insurance Plc saw its share price surge by 59.8 per cent, while Royal Exchange Plc and Sovereign Trust Insurance Plc (SOVRENINS) gained 59.3 per cent and 59.1 per cent, respectively. Rounding out the top five performers was Cornerstone Insurance Plc, which appreciated by 54.5 per cent.
The bullishness was not confined to insurance, however. The Industrial Goods sector also performed strongly, appreciating by 8.73 per cent on the back of gains in large-cap stocks such as Dangote Cement and BUA Cement. The Consumer Goods index followed closely behind with an 8.27 per cent week-on-week rise, supported by upward movements in stocks like BUA Foods, Guinness Nigeria, and Ellah Lakes. The Oil & Gas sector also managed a 0.17 per cent gain, with support from counters such as OANDO and JAPAULGOLD.
“What we’re seeing is a market that is increasingly mature and discerning,” noted Ifeoma Nwachukwu, an independent financial markets analyst. Nwachukwu added: “The liquidity from the insurance rally is not just staying within that sector; it’s flowing into other fundamentally strong names. The performance of industrial and consumer goods counters shows that investors are confident in the country’s economic stability and are positioning themselves for a sustained period of growth.”
While the week was defined by a bullish momentum, it ended with a notable correction. The Nigerian equities market snapped a 26-day bullish run on Friday, with investors recording a loss of N516.14 billion. This brought to an end an uninterrupted period of gains that had lasted since early July.
The market had witnessed a continuous stream of gains throughout the week, with investors pocketing N1.78 trillion on Monday, followed by gains of N458.43 billion on Tuesday, N643.74 billion on Wednesday, and N478.83 billion on Thursday. The Friday loss, therefore, was widely viewed as a natural and healthy consequence of investors taking profits after a period of exceptional returns.
This sentiment was reflected in the mixed market activity. While the total volume of shares traded spiked by 79.8 per cent week-on-week to 8.72 billion units, the total market value traded declined by 10.5 per cent to N134.04 billion.
On the flipside, the Commodities and Banking sectors came under pressure, declining by 2.33 per cent and 0.75 per cent, respectively. The losses were driven by sell-offs in names like TotalEnergies, Presco, Zenith Bank, and Access Holdings.
Looking ahead, analysts anticipate a mixed but ultimately positive market. The prevailing sentiment remains broadly optimistic, but a contest between bulls and bears is expected as some investors continue to take profits from the long rally.
Analysts at Cowry Asset Management believe that the market will continue to witness further portfolio rotations as investors reposition based on evolving sectoral opportunities, corporate earnings expectations, and macroeconomic cues. They added that the insurance sector, in particular, is expected to remain in focus due to its reform-driven outlook and recent price momentum.
