Nigeria’s equities market sustained its bullish momentum last week, posting its strongest week-on-week (W/W) performance of the year as robust buying interest across major sectors pushed the benchmark index deeper into record territory. The rally was further bolstered by firmer global oil prices, which reinforced optimism around Nigeria’s fiscal outlook and macroeconomic stability.
Data from the Nigerian Exchange Limited (NGX) showed that investors gained more than N8.137 trillion in market value over the week, reflecting a sharp surge in demand for listed equities.
Market Capitalisation Hits N126.16 Trillion
Market capitalisation — a measure of the total value of listed equities — climbed to N126.164 trillion, the highest level recorded this year, up from N117.027 trillion the previous week. The steep rise underscores renewed investor appetite, driven by selective institutional accumulation and fresh positioning in fundamentally strong stocks.
Similarly, the NGX All-Share Index (ASI), the market’s key performance gauge, advanced by 6.95 percent W/W to close at 194,989.77 points, compared to 182,313.08 points in the preceding week. Analysts noted that the sharp increase reflects strengthening investor confidence amid improving corporate earnings expectations and supportive macroeconomic signals.
Oil Prices Add Momentum
In the broader macroeconomic landscape, global crude oil prices provided additional sentiment support. Brent crude traded above $71 per barrel, while West Texas Intermediate (WTI) hovered near $66 per barrel, amid renewed geopolitical tensions in the Middle East.
Market watchers pointed to heightened concerns over potential supply disruptions around the Strait of Hormuz, which sustained a geopolitical risk premium in oil markets. For Nigeria, stronger oil prices are seen as a positive development, enhancing fiscal stability expectations and strengthening foreign investor sentiment toward domestic equities.
Trading Activity Surges
Market participation improved markedly during the week, with total trading volume and value rising by 148.4 percent and 87.1 percent W/W, respectively. The surge in activity signals heightened engagement from both retail and institutional investors seeking to capitalize on the ongoing rally.
Sectoral performance aligned broadly with the positive market tone. The Industrial Goods Index led gains with a 10.1 percent increase, followed by the Oil & Gas Index at 8.7 percent. The Consumer Goods Index rose 6.1 percent, while the Banking and Insurance indices advanced by 5.7 percent and 4.7 percent, respectively. The broad-based strength highlights the depth of the current uptrend across key segments of the market.
Earnings, MPC Meeting in Focus
Looking ahead, analysts at Cordros Capital indicated that investor sentiment this week is likely to be shaped by audited earnings releases and dividend declarations from major companies across sectors such as cement, telecommunications, oil and gas, and consumer goods.
In addition, market participants are expected to closely monitor the Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN). Cordros analysts anticipate a 50 basis point reduction in the policy rate to 26.5 percent — a move that could further influence liquidity conditions and equity valuations.
Commenting on the broader outlook, analysts at InvestData Consulting Limited maintained a constructive near- to medium-term stance. They cited sustained institutional positioning, supportive oil price dynamics, and positive earnings expectations as potential upside catalysts.
However, they cautioned that investors should keep a close watch on liquidity trends and sector rotation patterns. Short-term volatility may emerge from profit-taking in recently rallied stocks, but such pullbacks could present attractive re-entry opportunities in fundamentally sound counters.
As long as the ASI sustains levels above the 190,000-point support threshold, analysts believe the broader bullish trajectory remains intact, positioning the Nigerian equities market for further gains in the weeks ahead.