Onome Amuge

Nigeria’s stock market opened the week on a bullish note, with a sharp rally in shares of PZ Cussons Nigeria and University Press Plc helping to lift the benchmark index and reinforce investor confidence in a market that has already returned more than 35 per cent this year.

The NGX All-Share Index (ASI) rose by 0.30 per cent on Monday to close at 139,394.75 points, while total market capitalisation expanded by N262.35 billion to N88.20 trillion. The advance, which came after the Eid al-Maulud holiday, extended the year-to-date gain to 35.43 per cent, positioning Nigeria’s bourse among the strongest performers globally in 2025.

Market breadth was notably positive, with 40 stocks advancing against 19 decliners. PZ Cussons Nigeria and University Press led the charge, each posting the maximum allowable daily increase of 10 per cent. Consumer goods company PZ Cussons closed at N35.20 per share, up from N32.00, while publisher University Press ended the session at N5.50, compared with N5.00 previously. Ellah Lakes followed closely with a 9.94 per cent jump to N14.27.

Analysts said PZ Cussons’ performance reflected renewed optimism in Nigeria’s consumer sector despite persistent inflationary pressures and weak household incomes. The company, a subsidiary of the UK-listed PZ Cussons Plc, manufactures and distributes household and personal care products including soaps, detergents and beauty brands widely consumed across Nigeria.

The 10 per cent increase added N3.20 to the company’s share price, marking its strongest one-day performance in months. Investors have been watching for signs of improvement in the company’s financials, as the naira’s depreciation in 2023 eroded margins for manufacturers dependent on imported raw materials. Market watchers suggest that PZ Cussons’ rally may also have been supported by bargain hunters positioning ahead of interim results.

Shares in University Press, one of Nigeria’s oldest publishers, also gained the maximum 10 per cent limit, rising 50 kobo to N5.50. Investors cited the company’s steady revenue outlook tied to the education sector, which remains relatively insulated from broader economic volatility.

Demand for educational materials has grown following reforms by Nigeria’s federal and state governments aimed at improving literacy rates, while the expansion of private schools has boosted textbook sales. Analysts said University Press could benefit further from digital publishing initiatives and government contracts.

The twin rallies in PZ Cussons and University Press accounted for a large portion of Monday’s market momentum and highlighted investor appetite for consumer and education-linked counters, even as banking and oil stocks lagged.

Sectoral performance was mixed. This is as insurance stocks led with a 3.16 per cent gain, supported by renewed buying interest in mid-tier insurers. Consumer goods advanced 0.60 per cent, while industrials added 0.02 per cent and commodities rose 1.60 per cent. By contrast, the banking sector slipped 0.53 per cent and oil and gas closed flat.

Trading activity showed a split pattern. Deal numbers rose sharply by 47.77 per cent to 36,036, and volumes increased 14.5 per cent to 947.87 million units. But the total value of transactions fell 47.5 per cent to N17.97 billion, reflecting the dominance of lower-priced stocks in the day’s activity.

First City Monument Bank (FCMB) led both volume and value charts, trading 460 million shares worth N4.7 billion in 679 deals. Universal Insurance followed with 42 million shares, while Royal Exchange moved 35 million shares. Among the larger banks, Zenith Bank and Guaranty Trust Holding Company were also heavily traded, with N1.7 billion and N1.6 billion worth of shares changing hands respectively.

Despite the upbeat tone, several stocks posted steep losses. Nigerian Enamelware, Industrial & Medical Gases, and Union Dicon Salt all shed 10 per cent each, closing at N35.10, N33.30 and N10.80 respectively. Analysts said the declines reflected profit-taking in less liquid counters rather than fundamental weaknesses.

Brokerage CardinalStone advised investors to maintain current portfolio positions while awaiting half-year results and possible interim dividend declarations from banks. “Portfolio adjustments will be made as necessary to keep positioning optimal,” the firm said in a note to clients.

Market sentiment remains underpinned by expectations that monetary authorities will maintain tight policy to contain inflation, while relative stability in the naira has helped restore some confidence in equities. The extension of United Bank for Africa’s N157 billion rights issue deadline by two weeks also underscored ongoing recapitalisation efforts in the financial sector, which analysts say could influence bank valuations in the near term.