The Nigerian stock market recorded an impressive performance last week, returning its highest weekly gain of N3.46 trillion for the year so far.
The market lit up the week, riding on the back of strong investor confidence, sector-wide momentum, and an influx of funds from a softening money market.
The bullish rally reached new heights, as the NGX All-Share Index (ASI) surged by 4.26 per cent week-on-week, crossing the 126,000-point threshold for the first time to settle at 126,149.59 index points. Also, the overall market capitalisation gained N3.46 trillion to close the week at N 79.803 trillion.
The rally was primarily driven by heightened interest in banking, insurance, and consumer goods stocks—sectors currently basking in strong earnings sentiment ahead of the second quarter reporting season.
On the sectoral front, the bulls maintained a dominant presence. The NGX Insurance and NGX Banking indices led the charge, gaining 13.83 per cent and 12.49 per cent, respectively. The NGX Industrial and Consumer Goods indices posted a weekly gain of 2.94 per cent and 2.18 per cent respectively, while the NGX Commodity index up by 0.31 per cent for the week. On the other hand, NGX Oil & Gas Index declined by 0.72 per cent W-o-W.
Also, market breadth for the week was positive as 90 equities appreciated in price, 16 equities depreciated in price, while 41 equities remained unchanged. FTN Cocoa Processors led the gainers table by 60.60 per cent to close at N7.50, per share. Red Star Express followed with a gain of 60.57 per cent to close at N13.44, while Omatek Ventures went up by 60.44 per cent to close to N1.46, per share.
On the other side, Legend Internet led the decliners table by 12.50 per cent to close at N7.00, per share. International Energy Insurance followed with a loss of 6.75 per cent to close at N2.21, while Oando declined by 6.09 per cent to close at N51.70, per share.
Overall, a total turnover of 5.390 billion shares worth N107.811 billion in 134,390 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 5.466 billion shares valued at N108.099 billion that exchanged hands prior week in 118,570 deals.
Looking into next week, Cowry Asset Management Limited said that “a more cautious and mixed tone may emerge. As the market approaches overbought territory, investors are likely to begin profit-taking and portfolio rebalancing.”
The firm noted that this shift could be further shaped by the upcoming inflation data from the National Bureau of Statistics (NBS) and growing anticipation surrounding the Central Bank of Nigeria’s (CBN) Monetary Policy Committee meeting scheduled for July 20 to 21, 2025.
“The NGX now sits at a technical inflection point—poised either for a healthy pullback or a continuation of the uptrend, depending on market sentiment and economic signals.
“With second-quarter earnings season ramping up and companies beginning to announce board meetings for Q2 results approval, investors will remain focused on corporate performance and policy direction. Nevertheless, we continue to advise investors to position in companies with strong fundamentals and earnings potential,” it explained.
