The Nigerian Exchange Limited (NGX) extended its bullish momentum last week, driven by the Central Bank of Nigeria’s (CBN) decision to maintain the Monetary Policy Rate (MPR) at 27.5% and strong Q2 2025 corporate earnings. The combination has fueled investor optimism, boosting demand for stocks across multiple sectors and pushing the NGX All Share Index (ASI) to 134,452.93 points, a 2.2% increase from 131,585.66 points the previous week.
The market’s robust performance added over N1.8 trillion to investors’ wealth, with market capitalization rising to N85.055 trillion from N83.241 trillion. Key performers included Presco, which soared 22.5%, followed by Oando (18.9%), Dangote Sugar (14.3%), WAPCO (9.7%), and BUA Cement (9.4%). These gains reflect growing investor confidence as companies release impressive earnings ahead of the Q2 reporting deadline.
Sectoral indices also showed strong growth, with the Industrial Goods Index rising 4.7%, Insurance Index 3.1%, Consumer Goods Index 2.8%, Banking Index 1.8%, and Oil & Gas Index 0.9%. Despite the positive sentiment, trading activity weakened, with volume and value dropping 78.9% and 77.6% week-on-week, respectively, indicating cautious trading amid portfolio adjustments.
Analysts at Cordros Capital anticipate that the ongoing H1 2025 earnings season will continue to drive market sentiment. “With declining fixed-income yields due to lower stop rates at auctions, we expect investors to shift toward equities for better risk-adjusted returns,” they noted. Similarly, InvestData Consulting Limited predicts mixed sentiments as investors react to corporate earnings and engage in sector rotation. “More earnings releases and potential dividend announcements will shape market dynamics, with investors targeting undervalued stocks,” they added.
The CBN’s decision to hold the MPR steady, announced after the July 21-22 Monetary Policy Committee meeting, has supported a stable macroeconomic environment, contributing to the naira’s slight appreciation and a narrowing gap between official and parallel FX rates. With Month-to-Date and Year-to-Date returns at 12.1% and 30.6%, respectively, the NGX remains a bright spot for investors navigating Nigeria’s evolving economic landscape.
