Investors Drive NGX Up by 4.48%, Adding N4.32 Trillion in Weekly Gains

The Nigerian Exchange (NGX) witnessed an impressive rebound last week, closing with a 4.48 percent gain as investors’ renewed appetite for equities lifted the market’s capitalisation by a remarkable N4.32 trillion. The rally, which marked one of the strongest weekly performances in recent months, reflected investors’ optimism over improving macroeconomic indicators and increased confidence in the financial and industrial sectors.

Market data showed that the NGX All-Share Index surged from 100,299.48 points recorded in the previous week to 104,791.31 points by the close of trading on Friday. Consequently, the market capitalisation rose from N56.76 trillion to N61.08 trillion, reflecting the magnitude of the renewed interest in the equities market. Analysts attributed the bullish momentum to a combination of strong corporate earnings, sustained foreign inflows, and favourable policy signals from the Central Bank of Nigeria (CBN).

According to traders, the renewed interest from both institutional and retail investors played a significant role in the week’s rally. The financial services and industrial goods sectors led the charge, driven by demand for blue-chip stocks such as Dangote Cement, MTN Nigeria, Zenith Bank, and BUA Foods. These stocks recorded strong price appreciations, helping to push the market higher.

A senior market analyst, Tunde Ajayi, explained that the strong performance of banking and manufacturing equities was an indication of improving investor sentiment toward Nigeria’s economic recovery. He said the CBN’s ongoing reforms aimed at stabilising the foreign exchange market and improving liquidity had begun to restore confidence in the market. “We are beginning to see a return of foreign portfolio investors who had previously exited the market due to uncertainties in the forex space,” he added.

Trading activity also recorded an uptick, with total turnover rising to 2.16 billion shares valued at N52.8 billion, traded in 47,635 deals, compared to the previous week’s 1.88 billion shares worth N40.4 billion exchanged in 43,533 deals. This surge in activity signified increased participation across key sectors of the market. The financial services industry remained the most active, accounting for 55.9 percent of the total equity turnover volume, followed by the conglomerates and consumer goods sectors.

Top gainers during the week included Dangote Cement, which appreciated by 9.7 percent; BUA Cement, up by 8.5 percent; and Zenith Bank, which advanced 6.3 percent. Similarly, MTN Nigeria’s stock gained 5.8 percent, buoyed by renewed investor confidence and expectations of improved profitability in the telecom sector following recent regulatory clarity.

On the other hand, a few stocks recorded price declines, reflecting selective profit-taking by investors after earlier gains. Notable among the losers were Oando Plc, GlaxoSmithKline Nigeria, and Ikeja Hotel, which shed between 3 and 5 percent during the week. Despite this, the number of gainers far outweighed decliners, underscoring the market’s positive breadth.

Analysts noted that the market rally coincided with encouraging economic reports showing a gradual easing of inflationary pressure and signs of forex market stability. The CBN’s recent interventions, including liquidity injections and forward contract settlements, have contributed to a more stable naira exchange rate, which in turn has improved investor sentiment. Additionally, the federal government’s focus on infrastructure investment and industrial expansion is seen as a supportive factor for corporate earnings growth.

Market watchers also believe that the strong performance of the equities market could extend into the coming weeks, especially as listed companies continue to release positive third-quarter earnings. The combination of improved investor confidence, stable macroeconomic conditions, and stronger liquidity flows is expected to sustain momentum. However, analysts cautioned that investors should remain watchful of external risks, including global oil price volatility and potential interest rate adjustments in major economies, which could impact capital inflows.

The head of research at a leading investment firm, Olubunmi Ojo, commented that the surge in market capitalisation was also partly driven by increased participation from pension funds and domestic institutional investors. “The steady rise in local investor participation has been one of the stabilising forces in the NGX. While foreign inflows are returning, the domestic base has provided much-needed resilience against external shocks,” she said.

In the fixed income market, yields on government securities remained relatively steady during the week, as investors balanced between risk-free instruments and equity investments. Analysts said the moderate yield levels in the bond market encouraged more investors to shift their focus to equities, seeking higher returns amid expectations of stable monetary policy in the short term.

Looking ahead, analysts predict that the NGX could continue its upward trajectory if the government maintains its reform momentum and the CBN sustains policies that enhance market transparency. The market’s outlook remains positive, with renewed optimism about Nigeria’s economic direction underpinned by strong corporate fundamentals and gradual macroeconomic stability.

By the end of the week, investor sentiment was overwhelmingly positive, with many viewing the rally as a signal of confidence returning to Nigeria’s capital market. The NGX’s strong performance also reflects the broader recovery trend across African stock exchanges, as regional economies benefit from stabilising commodity prices and improving fiscal discipline.

If the current momentum continues, the NGX could set a new benchmark level in the coming weeks, potentially crossing the 105,000-point threshold — a record that would underscore investors’ faith in the Nigerian market’s long-term potential.