Despite a shortened trading week due to the Easter Monday holiday, the Nigerian stock market delivered an impressive performance, adding a remarkable ₦965.7 billion in value within just four days.
This surge was primarily driven by investors’ sustained appetite for blue-chip stocks, following the release of full-year 2024 earnings reports, dividend announcements, and fresh first-quarter 2025 (Q1’25) financial results.
The benchmark All-Share Index (ASI) climbed by 1.46% week-on-week, closing at 105,752.61 points, powered by strong buy-side momentum, especially among large-cap stocks. The market capitalisation soared to new heights, reinforcing investor optimism and signaling renewed confidence in the strength of Nigeria’s leading companies.
Blue-Chip Stocks and New Listings Drive Momentum
Investor sentiment received an additional boost with the introduction of Legend Internet Plc, whose listing contributed over ₦11.28 billion to the exchange’s overall market value. This development not only highlighted growing confidence in the Nigerian Exchange but also added to the positive momentum that carried the market upward.
The cumulative effect of these bullish trends pushed the year-to-date (YTD) market return to 2.75%, illustrating a healthy recovery after previous market corrections. Market breadth remained robust, with 63 stocks recording gains against 27 decliners, translating into a solid breadth ratio of 2.33x—a clear sign of widespread investor optimism.
Sectoral Performance: Consumer Goods, Insurance, and Banking Lead the Rally
Most sectors ended the week on a bullish note, with the Consumer Goods Index outperforming all others by surging 8.57%. Companies such as International Breweries, NASCON Allied Industries, Ikeja Hotel, and Cadbury Nigeria posted notable gains.
The Insurance sector also had a strong showing, with the NGX Insurance Index climbing by 7.3%, supported by buying interest in names like NEM Insurance, Cornerstone Insurance, and Lasaco Assurance. The Banking sector was not left behind either; the NGX Banking Index rose by 5.06%, driven by significant interest in JAIZ Bank, Ecobank Transnational Inc. (ETI), and Access Holdings.
Meanwhile, the NGX Commodity Index posted a marginal 0.04% gain, reflecting cautious optimism among commodity-linked stocks. However, the Oil & Gas and Industrial Goods indices closed the week lower, slipping by 0.07% and 3.43%, respectively. Profit-taking activities and weak sentiment around firms such as Dangote Cement, Berger Paints, and MRS Oil Nigeria dampened performance in these segments.
Financial Services Sector Dominates Activity
The financial services sector once again led the market in terms of trading activity, accounting for 68.28% of the total equity turnover volume and 52.48% of the total value. A staggering 1.266 billion shares worth ₦29.4 billion were traded across 24,351 deals.
The ICT sector followed, with 136.7 million shares valued at ₦12.47 billion, while the Consumer Goods sector recorded 118.6 million shares traded, worth ₦4.415 billion. Among individual equities, Fidelity Bank Plc, Access Holdings Plc, and Guaranty Trust Holding Company Plc emerged as the most traded, jointly accounting for 43.03% of the week’s total volume and 39.34% of total value.
Positive Outlook, But Caution Urged
Market analysts, including those from Cowry Asset Management Limited, remain optimistic that the bullish trend will continue into the coming week, driven largely by investors responding to strong Q1’25 earnings releases. Companies demonstrating resilient growth, strong fundamentals, and attractive dividend payouts are expected to attract the most attention.
However, experts also caution investors to remain selective. According to Codros Capital, while ongoing earnings reports will underpin short-term gains, medium-term performance will be influenced by broader macroeconomic conditions and trends in the fixed-income market. Vetiva Brokerage similarly noted that while earnings season is fueling the current rally, intermittent profit-taking could temper some of the recent gains, especially in sectors that have witnessed rapid price increases.
Conclusively, while the Nigerian stock market’s near-term outlook remains largely positive, a strategic approach focusing on quality stocks and close attention to macroeconomic developments will be key to navigating the evolving market landscape successfully.
