Investor trust on the Nigerian Exchange (NGX) keeps growing as strong corporate earnings and falling yields in the fixed income market drive substantial equity capital inflows. The outcome: an amazing rise of ₦1.8 trillion in investor riches in only seven days.
As widespread gains across significant industries indicated renewed optimism, the NGX AllShare Index closed the week up 2.2%, at 134,452.93 points. This expansion pushed the market capitalization to ₦85.06 trillion, which represents a 30.63 percent return so far in 2025. With 60 equities registering gains against 43 losers, market breadth increased to 1.40x, indicating a strong rise in investor demand.
Following a significant decline in treasury bill yields seen in the mid-week primary market auction, this positive rally ensued. The change created expectations for a possible interest rate cut, therefore motivating investors to move emphasis from fixed-income products to higher-yielding equity securities.
The decision of the Central Bank’s Monetary Policy Committee (MPC) to keep all policy settings constant also helped to calm market participants, which led to portfolio rebalances toward companies with high returns given the present state of the economy.
Though the tone was optimistic, trading volume fell off dramatically. Weekly transaction volumes dropped 78.9% to 3.68 billion units, while the worth of traded shares fell 77.6% to ₦111.9 billion. Analysts see this as institutional investors preparing for month-end corrections taking a cautious break.
Generally speaking, sectoral performance was still good. The NGX Industrial and Insurance indexes headed the gains of 4.66 percent and 3.07 percent, respectively, aided by significant activity in Julius Berger, BUA Cement, International Energy Insurance, and Sovereign Insurance.
Consumer products stocks did well as well, driving the NGX Consumer Goods Index up 2.81 percent, while the Commodities Index gained 2.24 percent. Supported by renewed interest in Wema Bank, Oando, Guinness, Presco, Dangote Sugar, and Okomu Oil, the Banking and Oil & Gas indices likewise rose 1.84 percent and 0.87 percent.
With wary optimism, market analysts are starting the new week. Cowry Asset Management claims that mixed performance in the upcoming days could be caused by the mix of ongoing Q2 2025 profit releases and projected end-of-month portfolio rebalancing. Still, sentiment is anticipated to support fundamentally sound companies.
Cowry’s experts underlined the need of focusing on companies with resilient business models and high dividend possibilities, especially given changing yield dynamics and steady monetary policy signals.
Likewise, according to specialists at Cordros Capital, investor behavior in the short run will be influenced by the official start of the half-year earnings season. They project that decreasing stop rates at recent fixed income auctions could cause a steady movement of money into equities in quest of superior risk-adjusted returns.
Echoing this idea, Vetiva Dealings and Brokerage predicted consistent bullish momentum at the beginning of the week. Both of which are likely to keep the market on an upward path, the company attributes this to positive earnings sentiment and decreasing interest rates.
The equities market looks well-positioned to provide more value to investors in the next few weeks as corporate earnings season is in full swing and returns are still low.
