Investors in the Nigerian stock market celebrated significant gains this week, as a sustained rally added ₦3.46 trillion to the total market value of listed equities, pushing the Nigerian Exchange (NGX) to an unprecedented ₦80 trillion market capitalization.
The bullish momentum across the week was underpinned by broad-based investor confidence, supported by sector-wide buying and a reallocation of capital from a weakening money market, according to trading experts and analysts.
By week’s end, the NGX All-Share Index (ASI) posted a weekly gain of 4.26%, closing at a new historic high of 126,149.59 points. This milestone marks the first time the benchmark index has breached the 126,000 level.
Cowry Asset Management attributed the rally primarily to intensified interest in banking, insurance, and consumer goods stocks. These sectors are currently riding high on optimistic earnings expectations ahead of the upcoming Q2 reporting season.
Market analysts further explained that the declining yields in the fixed income space amplified equity market inflows. After last week’s Treasury Bills auction saw the 1-year stop rate dip to 16.30%, equities became a preferred vehicle for yield-seeking investors.
This shift was mirrored in the Money Flow Index (MFI), which entered positive territory, signaling robust liquidity and active participation. Consequently, the NGX market capitalization appreciated by 4.54%, ending the week at ₦79.80 trillion.
This market upswing has brought the NGX’s year-to-date return to 22.56%, reflecting the enduring bullish sentiment and positive investor outlook.
Of the 105 traded stocks this week, 89 recorded gains while only 16 declined, resulting in a strong market breadth ratio of 5.56:1. Despite the price surge, total trading volume and value dipped slightly by 1.38% and 0.27% respectively, amounting to 5.39 billion units and ₦107.81 billion in turnover.
However, the number of executed deals rose by 13.34% to 134,389, indicating sustained investor engagement.
Sectoral performance was overwhelmingly positive. The NGX Insurance Index soared by 13.83%, while the Banking Index jumped by 12.49%, thanks in part to gains in key stocks such as ZENITHBANK, UBA, FIRSTHOLDCO, AIICO, UNIVINSURE, and GTCO. Notably, GTCO saw increased investor demand following its landmark dual listing on the London Stock Exchange—the first Nigerian bank to achieve this feat.
Other sectors also participated in the rally. The NGX Industrial Index gained 2.94%, Consumer Goods Index added 2.18%, and the Commodity Index climbed 0.31%, supported by demand in FTNCOCOA, CILEASING, UNIONDICON, MCNICHOLS, MULTIVERSE, WAPCO, NB, and OKOMUOIL.
In contrast, the NGX Oil & Gas Index ended in the red due to sell-offs in OANDO and ETERNA. The week’s standout performers included FTNCOCOA and REDSTAREX, which surged by 60.60% each, along with OMATEK (60.4%), CILEASING (60.3%), and MEYER (60.1%).
The top decliner was LEGENDINT, which fell 12.5%, followed by INTENEGINS (-6.8%), OANDO (-6.1%), PRESTIGE (-5.3%), and ETRANZACT (-4.9%).
Looking ahead, Cowry Asset projects a shift to a more cautious sentiment as the market nears overbought levels. Analysts expect some degree of profit-taking and strategic portfolio realignment.
This expected moderation may also be influenced by the forthcoming inflation figures from the National Bureau of Statistics and the anticipated Monetary Policy Committee meeting by the Central Bank of Nigeria, scheduled for July 20–21.
“The NGX is at a pivotal stage,” Cowry Asset said. “Depending on investor response to macroeconomic indicators and corporate earnings, the market may either retrace or extend its upward trajectory.”
