The Nigerian stock market has witnessed an extraordinary rally in 2025, raking in over ₦25.7 trillion in investor gains between January and July.
This seven-month performance, described by experts as “unreal”, was driven by strong investor confidence in the economy, boosted by monetary policy shifts, relative forex stability, and sector reforms.
“The market has hit the level we saw in all of 2024 within just seven months,” said David Adonri, Executive Vice Chairman at High Cap Securities Limited.
Big Gains, Caution Rising
Market capitalisation surged to ₦88.4 trillion last weekend from ₦62.66 trillion in December 2024.
The NGX All-Share Index jumped 35.9% Year-to-Date (YtD), closing July at 139,863.53 points, up from 102,926.40.
July alone delivered a 16.5% return, almost half of the YtD gain.
Investor activity surged too—22 billion shares exchanged hands in July, up from 13.8 billion in June.
Despite the euphoria, many analysts are urging caution.
“A moderate correction can occur in Q3 to expunge some mispricing,” Adonri warned. “No market sustains a rally indefinitely.”
Sector Performance and Standout Winners
The NGX Industrial Goods sector led the pack with 71.9% growth, followed by Banking at 49.3%, Insurance at 23.53%, and Consumer Goods at 11.14%.
Oil and Gas, however, dropped by -10.16% YtD.
Notable July gainers in Industrial Goods included Tripple Gee (88.44%), Lafarge (70.87%), Meyer (64.18%), and BUA Cement (41.51%).
Heavyweights like Dangote Cement and Lafarge Africa were major drivers.
In the Banking sector, Wema Bank surged 47.16%, UBA 40.21%, Zenith 34.33%, and GTCO 23.69%.
The NGX Insurance Index rose 17.74%. Sovereign Trust Insurance led the charge with a 41.04% jump.
Consumer Goods stocks like Cadbury (63.86%), McNichols (60.87%), and Dangote Sugar (53.61%) delivered solid returns.
Oil and Gas was sluggish, gaining only 1.72% in July. Oando climbed 16.32%.
Investor Confidence and Market Outlook
According to Tajudeen Olayinka, an investment banker, “Macroeconomic stability has become a new signal to both fixed income and equity markets.”
“Investors discovered prices were low and began to re-price shares with strong demand,” he said.
The market’s bullish sentiment stems from recovering companies, improved liquidity, and a more stable forex market.
Still, experts believe price corrections are inevitable when market fundamentals are no longer clear.
Olayinka advised that companies might begin raising fresh capital through new share issues or bonus offerings to ease the rally.
“The government should avoid anti-market moves like the 30% capital gains tax,” he added.
Both analysts praised the growing influence of domestic investors, which has made the market more resilient to foreign shocks.
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