By Chukwuma Umeorah
The Nigerian equities market sustained its bullish momentum on Thursday, July 17, 2025, as the NGX All-Share Index (ASI) advanced by 1.02 per cent or 1,316.76 points to close at 130,283.84 points, a new-high.
Market capitalisation reached N82.41 trillion after gaining N833.0 billion on Thursday. This marked a weekly gain of 6.8 per cent, 11.56 per cent increase over the past month, and a 26.58 per cent rise year-to-date (YTD). This, according to market watchers signalled improved investor sentiment amid expectations of a near-term monetary policy easing and a strategic rotation from fixed income instruments into equities.
The sustained rally was largely influenced by gains in large-cap industrial stocks, as well as renewed investor interest in dividend-paying equities ahead of the half-year earnings season. Analysts say the shift in portfolio allocation is being driven by a mix of macroeconomic signals, particularly the decline in short-term interest rates and signs of easing inflation.
Data from the National Bureau of Statistics (NBS) this week showed that Nigeria’s headline inflation dropped for the first time in over a year to 22.22 per cent in June 2025, down from 22.97 percent in May, spurred by easing fuel prices and base effects.
This development has heightened speculation that the Central Bank of Nigeria (CBN) may begin to loosen its monetary stance, with the Monetary Policy Committee (MPC) expected to meet next week. The policy rate currently stands at 27.5 per cent.
“We expect that, given June’s easing inflation at 22.22 per cent year-on-year (y/y), the bond market will maintain a positive outlook, with room for further yield compression at the mid-to-long end of the curve. However, tight system liquidity may keep short-term demand relatively subdued,” analysts at Vetiva Research noted.
Meanwhile, the drop in treasury bill (T-bill) yields, especially at the shorter end of the curve, is also fuelling the redirection of funds into more attractive equity instruments.
The NGX Industrial Index rose sharply by 9.08 per cent on Thursday alone, delivering an impressive 15.04 per cent gain week-on-week (wow) and 16.29 per cent year-to-date.
BUA Cement led the day’s gainers with a 10 per cent rise to close at N112.20 per share, followed by Dangote Cement which rose by 9.99 per cent in value and Chams adding 9.96 per cent. First Bank Holding Company followed with a 9.94 per cent gain. These gains lifed the NGX Top 30 Index by 1.08 per cent on the day, and 7.02 per cent over the past week.
On the other hand, the Oil & Gas Index remained in negative territory, declining by 0.61 per cent on the day, extending its week-on-week loss to 1.21 per cent and year-to-date slide to 10.5 per cent, as investors continue profit-taking in the sector.
Thursday’s trading session saw active participation, with 129 equities recorded in trades. Market breadth closed negative with 30 gainers against 46 losers. Berger Paints Nigeria Plc topped the losers’ chart with a 10 per cent decline to N33.75, trailed by May & Baker, MeCure Industries, and John Holt, each also shedding 10 per cent of their value.
Access Holdings emerged as the most traded equity by volume, with 168 million shares exchanged. Other top-volume stocks included First HoldCo exchanging 86.4 million units of shares, Zenith Bank traded 83.4 million units while Nigerian Breweries traded 68.6 million units of shares.
Turnover on the NGX stood at N42.76 billion across 1.19 billion shares in 37,418 deals, representing a 4 per cent decline in volume but a 7 per cent increase in value compared to the previous day.
Sectoral indices were mixed, with the NGX Premium Index rising 2.74 percent, NGX Consumer Goods Index up 0.54 per cent, and the NGX Main Board Index marginally higher by 0.11 per cent. These movements reflect broad-based investor confidence ahead of expected earnings releases, particularly from the financial services and consumer goods sectors.
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