The Nigerian equities market sustained its bullish momentum for the trading week ended July 5, 2025, with investors doubling down on risk assets, largely buoyed by a combination of strong corporate earnings and declining yields in the fixed income and money markets. A sharp drop in Treasury bill yields at the mid-week Primary Market Auction, a direct consequence of interest rate cut expectations, prompted a wave of portfolio reassessments, despite the Monetary Policy Committee’s (MPC) recent decision to maintain status quo on all policy parameters.

The NGX All Share Index (ASI) advanced by 2.18 per cent week-on-week, closing at 134,452.93 points. This strong performance reflects a wave of investor confidence and fresh buy-side activity across the board. In lockstep, market capitalisation added N1.81 trillion, or 2.18 per cent, to settle at N85.06 trillion, pushing the year-to-date return to 30.63 per cent. Market breadth remained positive at 1.40x, underscoring the broad-based optimism, with 60 stocks recording gains against 43 decliners across the five trading sessions, one more than the prior four-day week.

However, activity levels saw a sharp contraction during the week. The volume of trades plunged by 78.96 per cent week-on-week, while the value of trades declined by 77.65 per cent. Total traded volume stood at 3.68 billion units, with turnover coming in at NGN111.90 billion, a significant drop from 17.49 billion units and N500.76 billion in the preceding week. The notable reduction in market activity reflects a cautious recalibration by institutional investors and portfolio managers, potentially ahead of month-end positioning and in response to the recent market surge.

Sectoral performance was broadly bullish, with all six key indices closing in positive territory. The NGX Industrial and NGX Insurance indices led the pack, posting week-on-week gains of 4.66 per cent and 3.07 per cent, respectively. These gains were primarily driven by price appreciations in bellwether stocks such as International Energy Insurance (INTENEGINS), Sovereign Trust Insurance (SOVRENINS), Julius Berger (JBERGER), Lafarge Africa (LAFARGE AFRICA), and BUA Cement (BUA CEMENT).

The NGX Consumer Goods Index followed with a 2.81 per cent uptick, indicating sustained consumer demand and investor confidence in the sector. The NGX Commodity Index also rose by 2.24 per cent, reflecting positive sentiment in agricultural and other raw material markets. The NGX Banking and NGX Oil & Gas indices recorded gains of 1.84 per cent and 0.87 per cent, respectively, buoyed by buying interest in stocks like Wema Bank (WEMABANK), Oando (OANDO), Presco (PRESCO), Dangote Sugar (DANGOTE SUGAR), Guinness Nigeria (GUINNESS), and Okomu Oil (OKOMUOIL).

On the performance chart for individual stocks, The Initiates Plc topped the gainers’ list with a 60.8 per cent increase. Academy Press (ACADEMY) followed with a 33.0 per cent gain, while Enamelware (ENAMELWA) rose by 32.7 per cent. Wema Bank (WEMABANK) and Presco (PRESCO) also recorded gains of 23.6 per cent and 22.5 per cent, respectively. On the flipside, NSLTECH (-24.0%), OMATEK (-23.9%), Meyer (-21.4%), Neimeth International Pharmaceuticals (-19.3%), and Associated Bus Company (ABCTRANS) (-18.8%) were the worst performers for the week, indicating some profit-taking or specific company-related pressures.

Half Year Performance Review

Temi Popoola, group managing director and chief executive officer of Nigerian Exchange Group (NGX Group),   has attributed the impressive performance of the nation’s stock market in the first half of 2025 to a deliberate focus on structural reforms and strong regulatory engagement.

The first half of 2025 recorded strong momentum across multiple asset classes. Total market capitalisation of NGX-listed instruments rose by 16 per cent, from N112.60 trillion in January to N126.73 trillion by June. This growth was largely driven by equities, which increased from N62.76 trillion to N75.95 trillion. Fixed income remained stable at N50.56 trillion, while ETFs gained traction among retail investors, rising to N25.79 billion.

Speaking on the performance, Popoola said: “We have worked closely with the Securities and Exchange Commission to enhance market transparency, drive product diversification, and strengthen investor protections. Our aim is to build a market that competes globally while remaining inclusive and resilient.”

Under Popoola, Nigeria’s capital market is gaining renewed traction, driven by regulatory clarity, macroeconomic reform, and rising investor interest. He is repositioning the market as a catalyst for long-term capital formation and sustainable economic growth.

NGX Group, comprising Nigerian Exchange Limited (NGX), NGX Regulation (NGX RegCo), and NGX Real Estate (NGX RelCo), has taken a multi-layered approach to market development. From championing product innovation and policy advocacy to reinforcing investor confidence, the Group is strategically positioned to support Nigeria’s economic ambitions through a more efficient and accessible capital market.

Over N4.63 trillion in capital was raised in H1 2025 through the exchange, spanning corporate and sovereign instruments. This capital played a key role in financing infrastructure, supporting enterprise growth, and spurring innovation. Part of this traction can be traced to strategic initiatives introduced in 2024, including the launch of NGX Invest, a digital platform created to simplify participation in public offerings. Since its rollout, NGX Invest has expanded access to primary market instruments and played a central role in the ongoing banking sector recapitalisation, facilitating over N2 trillion in capital raised.

Commenting, Vice Chairman of Equity Capital Solution Limited, David Adonri, noted: “The equities market appreciated by 16.6 per cent in the first half, with Q2 alone contributing 13.6 per cent. Stabilising interest rates and foreign exchange conditions have restored investor confidence, particularly among foreign portfolio investors.”

Sectoral performance reinforced the overall market optimism. The NGX Consumer Goods Index advanced by 51.21 per cent, while the NGX Pension and Banking indices rose by 19.32 per cent and 18.06 per cent, respectively, indicating resilience across key sectors.

Beyond Nigeria, NGX Group is actively extending its footprint. Its investment in the Ethiopian Securities Exchange (ESX) marks a strategic push toward regional capital market integration. Simultaneously, ongoing engagements with the Shanghai and Hong Kong Stock Exchanges on dual listings and liquidity frameworks aim to connect Nigerian companies with deeper global pools of capital.

Outlook

Popoola disclosed that the outlook of the Nigerian bourse is continental and global. ‘’We’re focused on removing friction in capital flow across borders,” he said.

Meanwhile Analysts at Cowry Research anticipate a mixed performance in the new week, shaped by the ongoing release of corporate earnings and typical month-end window dressing activities. “While some profit-taking may emerge, we anticipate continued interest in fundamentally strong counters, particularly as investors respond to the MPC’s decision and shifting yield dynamics across asset classes,” they stated.

Investors were also advised to maintain exposure to high-quality stocks with strong fundamentals and a consistent dividend outlook.