Nigeria’s stock market generated N11.11 trillion in investor wealth in July as strong corporate earnings, declining fixed-income yields and renewed investor confidence pushed equities to fresh record highs.
Analysis of trading data from the Nigerian Exchange Limited (NGX) showed that the market capitalisation rose from N147.22 trillion at the start of July to N158.33 trillion by July 31, while the benchmark All-Share Index (ASI) advanced by 7 per cent, closing the month at 245,283.68 basis points.
The rally was driven largely by investors shifting funds from Treasury bills and other fixed-income securities into equities following a decline in yields, with listed companies also posting stronger-than-expected financial results.
Banking and consumer goods stocks attracted significant buying interest as investors positioned for interim and full-year dividend payouts, reinforcing bullish sentiment throughout the month.
Market analysts said the sustained upswing reflected growing confidence in Nigeria’s capital market despite persistent inflationary pressures and exchange rate volatility.
They also linked the performance to ongoing reforms aimed at improving market transparency, liquidity and investor protection, which have encouraged greater participation by both institutional and retail investors.
Chairman of NGX Group Plc, Umaru Kwairanga, had earlier attributed the market’s resilience to policy consistency, regulatory certainty and efforts to deepen market liquidity.
According to him, the Exchange remains focused on strengthening market integrity, improving resilience and expanding investor participation through technology and coordinated reforms involving regulators, issuers and other stakeholders.
He also stressed the importance of environmental, social and governance (ESG) standards in attracting long-term global investment into Nigeria’s capital market.
Trading activity also strengthened during the final week of July, with investors exchanging 5.12 billion shares valued at N404.76 billion in 285,223 deals, compared to 4.43 billion shares worth N306.14 billion recorded in the previous week.
The financial services sector dominated trading, accounting for more than three-quarters of total volume, while First HoldCo Plc, AVA Capital Plc and Access Holdings Plc emerged as the most actively traded stocks during the period.
Despite the strong monthly performance, the market witnessed mild profit-taking in the last trading week of July, causing the All-Share Index to dip by 0.84 per cent, while market capitalisation slipped by 0.79 per cent.
Most sectoral indices closed lower during the week, although the NGX Premium, Insurance and Sovereign Bond indices recorded modest gains.
Market breadth also weakened as declining stocks outnumbered gainers, reflecting cautious trading after the market’s historic rally.
Analysts, however, expect positive momentum to persist in the near term, supported by ongoing corporate earnings releases, lower fixed-income yields and expectations of interim dividend announcements, although intermittent profit-taking may continue to temper gains.
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