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By Chukwuma Umeorah
The Nigerian Exchange (NGX) closed the first trading week of July 2025 on a bullish note, driven by portfolio rebalancing and increased investor confidence ahead of the release of second quarter and half-year financial results.
The NGX All-Share Index (ASI) rose by 0.83 per cent week-on-week (WoW) to settle at 120,989.66 points, lifting the overall market capitalisation by N377.26 billion to N76.34 trillion.
The performance is a continuation of positive market sentiment as the benchmark index’s year-to-date (Ytd) return climbed to 17.55 per cent. Analysts attribute the rally to investors’ strategic positioning in fundamentally sound stocks, supported by improved profitability projections from listed firms and a wave of earnings forecasts for the remainder of 2025.
Despite the delisting of Notore Chemical Industries Plc from the Exchange during the review week, market breadth remained firmly positive. The weekly trading data showed that a total of 77 stocks recorded gains against 27 decliners, resulting in a strong market breadth ratio. Trading activity also surged, with volume traded increasing by 41.34 per cent to 5.47 billion units, while the total value exchanged rose by 6.40 per cent to N108.09 billion. The number of deals climbed to 118,569, up by 4.05 per cent from the previous week.
NEIMETH International Pharmaceuticals Plc emerged as the top gainer, posting a notable 60.5 per cent weekly return to close at N5.94 per share, up from N3.70. It was followed by Ellah Lakes Plc, which rose by 31.3 per cent to N7.00, and International Breweries Plc, up by 26.4 per cent to N13.90. Others on the top gainers list included CWG Plc adding 25.0 per cent, Champion Breweries Plc gained 22.0 per cent, Learn Africa Plc up by 21.7 per cent and Beta Glass Plc gained 21.0 per cent.
On the flip side, Multiverse Mining and Exploration Plc and ABC Transport Plc both led the losers’ chart with a 9.3 per cent decline each, closing at N8.75 and N2.45 respectively. Other notable laggards included Oando Plc (-7.4 per cent), BUA Foods Plc (-6.5 per cent), and DAAR Communications Plc (-6.2 per cent).
Sectoral performance leaned mostly bullish, with five of the six tracked indices closing in the green. The NGX Insurance Index recorded the highest gain, advancing by 5.86 per cent, driven by price appreciation in stocks like Guinea Insurance Plc, Sovereign Trust Insurance Plc, and Prestige Assurance Plc. The NGX Consumer Goods Index followed with a 4.08 per cent weekly gain, bolstered by strong performances from International Breweries Plc, Champion Breweries Plc, and Dangote Sugar Refinery Plc. Meanwhile, the NGX Oil & Gas, NGX Commodity, and NGX Banking indices posted modest gains of 0.77 per cent, 0.53 per cent, and 0.12 per cent, respectively. Stocks such as Eterna Plc, Okomu Oil Palm Plc, Presco Plc, Zenith Bank Plc, and Fidelity Bank Plc attracted increased buy-side interest, buoyed by sound fundamentals and earnings outlook.
However, the NGX Industrial Goods Index declined by 2.11 per cent as sell pressure persisted on Julius Berger Nigeria Plc, Abbey Mortgage Bank Plc, and Multiverse Mining and Exploration Plc.
Analysts at Cowry Asset Management expect market sentiment to remain cautiously optimistic as investors digest the Q1 2025 GDP report and anticipate more earnings releases for Q2 and H1 2025. “While market volatility may persist amid this flurry of activity, the broader outlook remains positive for fundamentally sound stocks with strong earning prospects.” They advise investors to maintain a long-term strategy by prioritising companies with robust fundamentals, consistent dividend history, and strong growth potential.
