Stock Market Investors Gain N12.47trn In July

The Nigerian equities market has recorded a substantial gain in July 2025, with investors gaining a whopping N12.474 trillion.

This impressive growth is attributed to the market’s bullish trend, which is driven by price appreciation in large—and medium-capitalized stocks.

Analysts noted that Nigeria’s equities market sustained its positive trajectory through the month in anticipation of the release of strong corporate earnings for the first half of 2025.

The market capitalisation gained N12.747 trillion from N75.951 trillion at the beginning of July to close at N88.425 trillion at the end of July 31, 2025. Similarly, the Nigerian Exchange (NGX) Limited All-Share Index (ASI) rose by 16.58 per cent from 119,978.57 on June 30, 2025, to 139,863.52 points on July 31, 2025.

Sectoral performance was broadly bullish throughout the month under review. The NGX Industrial Goods index recorded a growth of 26.19 per cent for the month of July. The NGX Banking index followed with a month-on-month gain of 22.17 per cent, while NX Insurance appreciated by 18.84 per cent.

Also, NGX Lotus II, NGX Pension, NGX 30, NGX Consumer Goods and NGX Oil & Gas indices up by 16.44 per cent, 14.25 per cent, 11.52 per cent, 9.93 per cent and 0.45 per cent respectively in the month under review.

Speaking on market performance for July, the vice president of Highcap Securities Limited, David Adonri, noted that with such a substantial rally to take place, investor confidence must have been remarkably high.

According to him, several factors contributed to this surge in confidence. Firstly, the positive expectations surrounding half-year disclosures played a crucial role. Many listed companies reported impressive H1 results, with some, like Unilever Nigeria, surprising the market by announcing interim dividends after years of not doing so. This flow of strong financial results undoubtedly supported the market’s upward trajectory.

Adonri added that “a decline in interest rates for short-term benchmarks, such as treasury bills and bonds, encouraged a shift from debt instruments to equities. Despite heavy oversubscription, the yields on these debt instruments decreased, further enhancing investor confidence in the broader Nigerian economy.

“Additionally, macroeconomic developments, such as a GDP growth of 3.13 per cent in the last quarter and a modest inflation rate of around 22.3 per cent, reinforced investors’ optimism. This positive outlook attracted domestic investors and garnered interest from foreign investors, helping to sustain the equity market rally.”

For the August outlook, he noted that “while the market has already reacted to various price-sensitive events and corporate disclosures, it is essential to acknowledge that market responses can sometimes exhibit exuberance, leading to potential corrections in the near future.”

The managing director of Global View Capital Limited, Kebira Aruna, stated that the All-Share Index experienced a significant gain of 16.58 per cent in July, and this impressive rise can be attributed, in part, to corporate reports that exceeded market expectations.

He explained that “historically, profit growth figures have hovered around 20 per cent to 50 per cent, but now there are instances of extraordinary recoveries, such as a company moving from a loss of N8.9 million to profits of N2.9 million and ultimately to N5.5 million, demonstrating growth in the vicinity of 100 per cent.

“With the anticipation surrounding dividend declarations, the market remains focused on companies that consistently perform well. However, the timeline for these results may vary, as the auditing process typically takes a couple of months, meaning we might see these announcements in mid-August or September.”

Aruna also said that “liquidity within the market remains a vital topic. While the government has been borrowing, there is a noticeable shift in appetite. For example, when the market offered $300 billion, the government only accepted $2.5 billion. Currently, the market’s offerings are reduced to $200 billion, with the government borrowing in smaller amounts, indicating a desire to negotiate better rates.”