Stock Market Sustains Rally, Appreciate by N1.81trn in One-Week
Kayode Tokede
The Nigerian stock market, last week, sustained its positive momentum with a gain of N1.81 trillion buoyed by half year (H1) ended June 30, 2025 corporate earnings and declining yields in money market instruments.
The 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, particularly in light of the Monetary Policy Committee’s (MPC) decision to maintain status quo on Monetary Policy Rate (MPR) at 27.50 per cent and other parameters.
The market’s benchmark indicator, the Nigerian Exchange Limited All-Share Index (NGX ASI), rose by 2.18 per cent week-on-week (W-o-W) to close at 134,452.93 basis points, lifting the Month-till-Date (MtD) and Year-till-Date (YtD) returns to +12.1per cent and +30.6per cent, respectively
Consequently, the overall market capitalisation gained N1.81 trillion to close the week at N85.055 trillion.
Sectoral performance was broadly positive following gains in the NGX Industrial Goods Index gained 4.7per cent, NGXInsurance Index added 3.1per cent, NGX Consumer Goods advanced by 2.8per cent, NGX Banking Index appreciared by 1.8 per cent and NGX Oil & Gas inched up by 0.9per cent.
However, the market breadth remained positive, underscoring the broad-based optimism as 60 stocks recorded gains against 43 decliners across the five trading sessions.
The Initiates Plc (TIP) led the gainers table by 60.82 per cent to close at N16.13, per share. Academy Press followed with a gain of 33.00 per cent to close at N9.31, while Nigerian Enamelware went up by 32.68 per cent to close to N27.00, per share.
On the other side, Secure Electronic Technology led the decliners table by 23.97 per cent to close at 92 kobo, per share. Omatek Ventures followed with a loss of 23.93 per cent to close at N1.24, while Meyer declined by 21.43 per cent to close at N16.50, per share.
Overall, a total turnover of 3.691 billion shares worth N112.261 billion in 138,250 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 17.498 billion shares valued at N500.762 billion that exchanged hands prior week in 142,082 deals.
On market outlook, analysts at Cowry Asset Management Limited said, “we expect a mixed performance in the coming 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. As always, we advise investors to maintain exposure to high-quality stocks with strong fundamentals and consistent dividend outlook.”
Afrinvest Limited stated that, “we expect the bullish sentiment to extend into the coming week supported by the positive investor sentiment and the anticipation of strong Q2 earnings from key players, following encouraging early earnings results.”
Looking forward, United Capital Plc noted that, “the equity market might continue in its upward trend leading to a slight gain in the ASI. This is hinged on investors positioning for Q2-earning season, favoring corporates with FX gains, cost control, clear growth trajectory, and those with potential for quality interim dividend payment.
“Similarly, while positive sentiment may persist, it is likely to be tempered by profit taking activities and NTBs market auction. We advise investors to position for fundamentally sound stocks with potential for impressive half year performance and interim dividend payment.”
Cordros ResearchIn in a report stated that, “In the near term, we expect the full commencement of the H1-25 earnings season to drive market sentiment. With lower stop rates at auctions, we anticipate a gradual rotation into equities as investors reposition for improved risk-adjusted returns amid declining fixed-income yields.”
