Nigerian Bourse Rallies As Composite Index Hits 131,585bps On Strong Gains, Mixed Sentiments

Post Views: 23

The bullish mode of stocks on the Nigerian Exchange (NGX) persisted for the eighth consecutive week back-to-back, despite profit booking across some sectors and equities classes during the short trading week with four trading sessions. This followed the holiday declared by the Federal Government on Tuesday, July 15, 2025, to honour Muhammadu Buhari, the country’s immediate past President who died in a London hospital two days earlier.

NGXASI Daily Chart

The week’s trading opened on a strong note on Monday when the composite All-Share Index (ASI) gained 539.95 points, closing at 126,689.54 on a high traded volume. This trend was sustained from the midweek to Friday, with more stocks hitting their new 52-week highs in the midst of profit taking. The week witnessed increased buying sentiment in highly priced stocks, a situation that supported the benchmark indicators which broke out various psychological lines of 128,000, 129,000, 130,000 and 131,000 basis points. Market capitalisation also hit yet another historic high of N83.24tr during the period.

NGXASI Weekly Chart (see Opening chart)

The week’s trading closed vary strong, with the benchmark NGX All-Share index at 131,585.66bps, translating to a market year-to-date return of 27.84%, just as market capitalization ended at ₦83.241tr. Week-on-week, the ASI gained 4.31%, while the NGX-30 index notched 4.63%. The Banking Index returned 5.36%; Pension Index, 3.36%; while the Consumer Goods Index added 1.34%. In contrast, the Insurance Index dropped by 3.64% and the Oil and Gas Index declined by 0.76%. While on a Year-to-date, the All-Share Index has climbed 27.84%, NGX 30 has advanced 26.84%, the Banking Index has surged 41.64%, the Pension Index has jumped 44.14%, the Insurance Index has risen 21.33%, and the Consumer Goods Index is up 62.76%. The Oil and Gas Index is however down 10.50%. Overall market breadth was negative, with 49 stocks advancing and 54 declining.

Eunisell Weekly Chart

Leading the top gainers for last week was Eunisell Interlinked Plc, a diversified electrical and engineering solution provider, as it leaped from ₦13.50 to ₦17.90 (up 32.59%); BUA Cement Plc followed with 31.28% ₦94.00 to ₦123.40 (₦94.00 to ₦123.40 each); Associated Bus Company Plc, ₦4.40 to ₦5.65 (28.41%); Industrial & Medical Gases Nigeria Plc, ₦34.00 to ₦42.45 (24.85%); and Secure Electronic Technology Plc, ₦1.00 to ₦1.21 (21.00%).

Academy Press Weekly Chart

On the decliners’ chart, Academy Press Plc, a resilient player in Nigeria’s printing and publishing sector fell from ₦9.25 to ₦7.00 (down 24.32%); R.T. Briscoe Plc opened at ₦4.40 each, but closed at ₦3.40 (-22.73%); Cutix Plc, ₦4.60 to ₦3.70 (-19.57%); Caverton Offshore Support Group, ₦8.00 to ₦6.46 (-19.25%); and Champion Breweries Plc, ₦14.90 to ₦12.29 (-17.52%).

Technical Outlook:

The NGXASI chart shows a clear breakout above the 130,000 psychological resistance, which had held for weeks. The RSI (Relative Strength Index) is trending above 70, indicating strong momentum, although entering overbought territory — a sign that short-term consolidation may be due. The MACD histogram is positive and widening, signalling continued upside momentum. The index remains above all major moving averages (20-day, 50-day, and 200-day), supporting a bullish outlook. Additionally, Volume spikes on up-days signal strong institutional buying. Market support is now at 128,000, while resistance lies at 133,500–134,000, the next possible target zone.

Trending in the Economy: Nigeria’s crude oil production rose to 1.505 million barrels per day in June 2025, up 3.58% from May and the highest since January, meeting its OPEC quota for the second time this year. Secondary sources put output even higher at 1.547 million bpd. Nigeria remains Africa’s top producer, ahead of Algeria. Meanwhile, OPEC+ plans to boost output by 548,000 bpd in August. Oil exports to OECD countries climbed, and inventories rose but remained below five-year and pre-COVID averages. OPEC warns of a possible 23 million bpd global supply gap by 2030 without major investment.

Nigeria’s annual inflation eased to 22.22% in June from 22.97% in May, marking a third consecutive monthly drop. However, food inflation inched up to 21.97% from 21.14%. The slowdown follows a January inflation basket rebasing. The central bank, which held rates steady at its last two meetings, is set to meet again next week.

Global Market and Oil: Global markets ended mixed on Friday as investors braced for corporate earnings and reacted to fresh U.S. tariff threats. MSCI’s global index rose 0.13% to 927.47 after touching a record high. Wall Street was mostly flat: the Dow Jones fell 0.32% to 44,342.19 (open: 44,483.45), S&P 500 dipped 0.01% to 6,296.79 (open: 6,297.36), while the Nasdaq edged up 0.05% to 20,895.66 (open: 20,866.43).

For the week, the Nasdaq gained 1.51%, S&P 500 rose 0.59%, and the Dow slipped 0.07%. As investors digested mixed U.S. economic data. Consumer sentiment improved and inflation expectations eased in July, yet households remained wary of rising prices. At the same time, housing data showed single-family homebuilding fell to an 11-month low in June. The earlier optimism from strong retail sales and jobless claims faded after a Financial Times report said President Trump is pushing for 15–20% minimum tariffs on EU goods and will keep auto tariffs at 25%.

Earnings-season caution was reflected in stocks like Netflix, which fell 5% to $643.11 (open: $677.89), and American Express, which dropped 2.3% to $225.41 (open: $229.84) despite solid results. Analysts pointed to high valuations and investor profit-taking. Ahead of July option expirations, investors positioned for reports from major growth and tech firms, with some showing fear of missing out on potential upside. In Europe, the STOXX 600 ended down 0.01%, posting a weekly loss of 0.06%.

The U.S. Dollar slipped slightly as the euro gained 0.27% to $1.1626. Against the yen, the dollar rose 0.09% to 148.73 amid concerns over Japan’s upcoming election. The dollar index fell 0.05% to 98.46.

Treasury yields dropped after Fed Governor Christopher Waller backed a potential rate cut. The 10-year yield fell to 4.424%, the 2-year to 3.873%, and the 30-year to 4.9958%.

Oil prices dips: U.S. crude settled at $67.34 (-$0.20) and Brent at $69.28 (-$0.24), as mixed U.S. data offset supply worries. Gold rose 0.33% to $3,349.66 on safe-haven demand, while platinum eased after reaching its highest level since 2014.

Sectorial Indexes Week Charts

NGX Banking Index Chart