KEY POINTS
- NGX All Share Index gains 3.2 percent WoW.
- Insurance reform fuels investor confidence.
- Q2 earnings support 11-week market rally.
Nigeria’s stock market notched its 11th consecutive weekly gain as investors cheered a new insurance industry law, upbeat corporate results, and supportive macroeconomic trends.
The Nigerian Exchange Limited All Share Index climbed 3.2 percent week-on-week to 145,754.91 points, extending a rally that’s lifted the benchmark more than 41 percent since January.
Market capitalisation swelled by over N2.21 trillion in the week to N92.21 trillion, from N89.37 trillion the previous week, as buying momentum persisted across key sectors.
Insurance reform boosts Nigerian stocks
Market operators said sentiment was driven by bargain hunting and a strong response to the Insurance Industry Reform Act, alongside solid Q2 earnings and macroeconomic improvements. Standout gainers included AIICO Insurance, up 59.8 percent, Cornerstone Insurance, 54.5 percent, and NEM Insurance, 29.9 percent. BUA Foods advanced 18.9 percent, Dangote Cement 9.2 percent, and BUA Cement 13.9 percent.
Month-to-date returns rose to 4.2 percent, while the year-to-date gain reached 41.6 percent. Trading volume surged 80.2 percent week-on-week, though trading value slipped 10.1 percent.
Sector gains led by insurance
Sector performance was broadly positive. The Insurance Index surged 41 percent, the Industrial Goods Index gained 8.7 percent, Consumer Goods climbed 8.3 percent, and Oil & Gas added 0.2 percent. The Banking Index was the sole laggard, down 0.8 percent.
Outlook mixed despite reform boost
Cordros Research analysts expect choppy trading ahead as investors lock in profits, although bargain hunting in select counters could persist. They see moderating fixed-income yields supporting further rotation into equities over the medium term.
InvestData Consulting analysts cited rising investor confidence, positive sentiment around earnings, and the new insurance law as key drivers, but advised traders to stay disciplined and watch for sector-specific catalysts and broader economic shifts that could sway market direction.
