The Nigerian stock market maintained its bullish momentum last week, with investors pocketing a hefty N1.81 trillion in capital gains as the All-Share Index (ASI) climbed 2.18% week-on-week to close at 134,452.93 points.
Market capitalisation also rose to N85.055 trillion from N83.243 trillion, fueled by falling yields in the fixed-income space and strong corporate earnings.
Investor sentiment was buoyed by the Central Bank of Nigeria’s (CBN) decision to hold key monetary policy rates steady during its July MPC meeting, alongside a sharp mid-week decline in Treasury bill yields.
“The drop in yields triggered significant portfolio rebalancing, with investors rotating into equities—especially fundamentally strong stocks benefiting from the earnings season,” analysts at Cowry Asset Management explained.
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Market breadth remained positive with 60 gainers versus 43 losers over the five trading sessions. The Initiates Plc (TIP) led the rally with a 60.82% jump to N16.13 per share. Academy Press gained 33% to N9.31, while Nigerian Enamelware rose 32.68% to N27.00.
On the flip side, Secure Electronic Technology dropped 23.97% to 92 kobo, followed by Omatek Ventures, down 23.93% to N1.24, and Meyer, which declined 21.43% to N16.50 per share.
Trading activity moderated, with total turnover falling to 3.691 billion shares worth N112.261 billion in 138,250 deals—down from the previous week’s 17.498 billion shares valued at N500.762 billion across 142,082 deals.
Looking ahead, analysts expect a mix of cautious trading and continued optimism. Afrinvest Limited predicts that anticipation of strong Q2 results from major companies will sustain positive momentum.
“Bullish sentiment is likely to extend, supported by earnings optimism and investor appetite for value stocks,” Afrinvest said.
United Capital Plc echoed this view but warned of potential headwinds from profit-taking and shifts in the NTB market. “Equities remain attractive, especially companies with FX gains and strong interim dividend prospects. However, profit-taking could limit upside in the near term,” it noted.
Analysts advise investors to remain focused on stocks with strong fundamentals as the earnings season deepens.