The Nigerian Exchange Limited (NGX) has achieved a significant milestone, closing the first half of 2025 with a remarkable ₦22.14tn gain in market capitalisation, taking the total valuation to ₦85.46tn. This growth, driven by investor confidence, strong corporate earnings, and improving macroeconomic indicators, signals a bullish market momentum ahead of Q2 earnings releases.
According to data from the Exchange, market capitalisation surged from ₦62.92tn on January 2 to ₦85.46tn by July 28, reflecting a 35.78% increase. The benchmark All-Share Index (ASI) followed a similar trajectory, rising from 103,180.14 points to 135,166.51 points, delivering a 31.02% year-to-date return to investors.
Investor sentiment was buoyed by positive corporate earnings, especially in banking, telecom, and industrial sectors. Sector-specific indices showed impressive growth: the Industrial Goods Index gained 4.66% week-on-week, Consumer Goods climbed by 1.29%, and Insurance advanced by 2.54%.
Market breadth improved significantly, with 60 equities gaining, 43 declining, and 44 remaining unchanged. Top gainers included The Initiates Plc, which soared by 60.82% to ₦16.13, Academy Press Plc (33.00% to ₦9.31), and Nigerian Enamelware Plc (32.68% to ₦27.00). Conversely, decliners were led by Secure Electronic Technology Plc, down 23.97%, and Omatek Ventures Plc, down 23.93%.
The market saw a weekly turnover of 3.69 billion shares worth ₦112.26bn in 138,250 deals. This marked a decline in volume compared to the previous week’s 17.5 billion shares traded, but an uptick in quality and value-driven activity.
The financial services sector led with 2.13 billion shares valued at ₦47.3bn, contributing over half of total trading volume. It was followed by agriculture and oil & gas sectors, underlining a diversified investor focus.
Three equities—Access Holdings, UBA, and Japaul Gold & Ventures Plc—dominated the charts, accounting for over 20% of the week’s total traded volume and 17% of its value.
Kicking off the final week of July, the NGX maintained its bullish tone. The ASI rose by 713.58 points to close at 135,166.51, and market capitalisation climbed by ₦400bn to hit ₦85.5tn.
A total of 127 equities participated, with 45 gainers and 26 losers. Trading volume hit 795.6 million shares in 37,626 deals, valued at ₦23.23bn—an 11% increase in volume and 51% increase in deal count compared to the previous session.
Analysts at Afrinvest and Merristem Securities predict continued bullishness in the coming months, citing Q2 earnings anticipation, stable FX conditions, and improving inflationary outlook.
Afrinvest’s H1 review noted, “The market rebounded from a subdued Q1 impacted by high interest rates and tight monetary policy. However, Q2 brought renewed investor appetite driven by dividend payouts, FX stability, and corporate earnings.”
Their base-case projection remains a 30.4% market gain for FY 2025, supported by expected bank recapitalisations, fiscal policy reforms, and potential high-profile listings.
Merristem added, “Strong performances in banking and industrial sectors reflect investor confidence. With second-quarter earnings trickling in, the NGX is well-positioned to sustain this growth.”
Key factors propelling the market include:
Improved FX liquidity and stability, easing pressure on corporate operations and import costs.
Attractive valuations, especially in banking and telecom sectors.
Fiscal reforms, including capital expenditure expansion, boosting investor confidence.
Dividend announcements and strong Q2 earnings forecasts from tier-one banks and blue-chip companies.
However, risks remain—global interest rate volatility, geopolitical tensions, and local regulatory uncertainty could pose challenges. Despite this, experts maintain that the Nigerian equity market is entering a favorable cycle, with room for capital appreciation in H2 2025.