The Nigerian Exchange Limited (NGX) witnessed a major bullish rally last week, with equities soaring by N3.5 trillion as investors moved capital away from declining fixed-income instruments into more rewarding stock market opportunities.
According to market data, the All-Share Index (ASI) gained 4.26% to close at an unprecedented 126,149.59 points—crossing the 126,000 mark for the first time. Total market capitalisation surged by 4.54%, from N76.34 trillion to N79.80 trillion, delivering one of the most robust weekly gains of 2025 so far.
Investor interest shifted dramatically following the latest treasury bills auction, which saw the one-year stop rate drop to 16.3%, reducing the attractiveness of government securities. In response, equities—which traditionally offer higher returns in a low-yield environment—attracted a new wave of speculative inflows often dubbed “hot money.”
This shift, analysts say, underscores renewed risk appetite and confidence in the market’s fundamentals.
“We are seeing portfolio managers rebalance away from bonds into equities,” said an analyst at Cowry Asset Management. “Yields on fixed-income assets are declining, and equities are currently seen as the more profitable hedge.”
The rally was driven by a strong showing in the banking, insurance, and consumer goods sectors—especially as investors anticipate positive second-quarter earnings results.
The NGX Insurance Index recorded the most impressive growth, surging by 13.83%, followed by the NGX Banking Index, which rose 12.49%. Heavyweights like Zenith Bank, GTCO, UBA, FirstHoldco (FBNH), and AIICO Insurance were among the top gainers.
GTCO’s dual listing on the London Stock Exchange—the first by a Nigerian bank—further fueled investor confidence, attracting foreign interest and boosting liquidity in the financial services sector.
The Consumer Goods and Industrial Goods indices also posted gains of 2.18% and 2.94% respectively, with renewed buying interest in companies such as Nestlé Nigeria, Nigerian Breweries, and WAPCO.
Market breadth was overwhelmingly positive with 89 advancing stocks against just 16 decliners, resulting in a strong ratio of 5.56:1. This trend confirms broad-based investor optimism, supported by an uptick in the Money Flow Index (MFI), a technical indicator used to gauge market participation and liquidity.
The only laggard for the week was the NGX Oil & Gas Index, which dipped slightly due to profit-taking in stocks like Oando and Eterna.
Despite the upbeat performance, market analysts warn that the market could enter overbought territory soon, suggesting that a short-term correction may be imminent.
Cowry Asset Management noted that investors may engage in strategic profit-taking and portfolio rebalancing in the coming days, especially as they await key macroeconomic indicators. The July inflation figures from the National Bureau of Statistics (NBS) and the upcoming Monetary Policy Committee (MPC) meeting scheduled for July 20–21 are expected to influence short-term market direction.
“We expect some cautious trading in the week ahead as investors position ahead of monetary policy signals,” the firm stated.
Year-to-date, the NGX has delivered a 22.56% return, supported by macroeconomic reforms, increased investor confidence, and digital innovations such as NGX Invest, a platform that has democratized access to public offerings and fueled capital mobilisation.
This positive momentum further affirms the NGX’s pivotal role in financing the Nigerian economy—especially as it continues to support corporate expansion and sovereign debt issuances.
As foreign and domestic investors continue to respond to Nigeria’s changing yield environment, all eyes remain on second-quarter earnings reports and macroeconomic signals that will shape the next chapter of the equities market rally.
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