The Nigerian Exchange (NGX) recorded a robust N1.18 trillion ($747 million at N1,579/$1) increase in market capitalization, propelled by strong investor confidence and stellar corporate earnings, particularly from Oando Plc. The All-Share Index surged by 1,466.87 points, a 1.22% gain, closing at 121,257.69, with a week-long rise of 3.83% and a year-to-date (YTD) growth of 17.81%, per THISDAY. Total market capitalization reached N76.5 trillion, reflecting heightened demand across sectors. Trading activity saw 861.67 million shares exchanged in 22,896 deals, generating a turnover of N26.18 billion, up 14% in volume, 12% in turnover, and 3% in deals from the prior session, according to NGX data.
Oando Plc spearheaded the rally, with its share price climbing 10% to N68.75 ($0.04) after reporting a 90.5% profit after-tax increase to N113 billion ($71.6 million) for Q1 2025, ending March 31, per BusinessDay. The energy firm’s performance, bolstered by rising oil prices as Bonny Light hit $76.60 per barrel, significantly lifted market sentiment. Other top performers included Dangote Sugar Refinery, also up 10%, and Champion Breweries and C&I Leasing, each gaining 9.98%. However, losses were recorded by University Press (-6.25% to N6.00), RT Briscoe (-6.12%), Multiverse Mining & Exploration (-4.89%), and Meyer (-4.69%), tempering the bullish run.
The banking sector was a key driver, with the NGX Banking Index advancing 2.38%, achieving an 8.86% weekly gain and nearly 21% YTD. Fidelity Bank led trading volume with 83 million shares, followed by Caverton Offshore Support Group (64.2 million), Zenith Bank (60.6 million), and Japaul Gold and Ventures (56.3 million). Other sectors also shone, with the Consumer Goods Index up 2.25% (52.96% YTD), Industrial Index up 2.24%, Insurance Index up 1.97%, and Pension Index up 1.3%, per Nairametrics. The consumer goods sector’s robust YTD performance reflects growing investor interest amid rising demand, despite 23.71% inflation in April 2025.
Posts on X, such as @Nairametrics and @vanguardngrnews, celebrated the NGX’s N1.18 trillion gain, linking it to Nigeria’s economic reforms, including President Tinubu’s signing of four tax reform bills on June 26 to enhance fiscal efficiency. However, @FinPlanKaluAja1 cautioned that naira volatility, with a projected 6% depreciation by mid-2026 per the AfDB, could challenge sustained gains. The CBN’s tight monetary policy, with a 27.5% Monetary Policy Rate and 50% Cash Reserve Ratio, has constrained liquidity, yet banks’ N140.97 trillion in deposits in 2024 signal resilience. Analysts, like Dr. Muda Yusuf of CPPE, attribute the rally to improved corporate earnings and optimism from reforms like the naira-for-crude deal with Dangote Refinery, which supplied N219.38 billion in crude by April 2025.
The NGX’s performance, with a 17.81% YTD gain, outpaces regional peers like Ghana’s GSE Composite (14% YTD), per Bloomberg. Continued investor confidence, driven by energy and banking sectors, could push market capitalization toward N80 trillion by Q3 2025, provided global oil prices and domestic reforms align. However, risks from pipeline vandalism and forex shortages, with 91% of dollar liquidity off the books per ABCON, underscore the need for sustained policy support to maintain this bullish momentum.
