The Nigerian Exchange (NGX) closed the first week of May 2025 with resounding gains, as investors saw their portfolio values swell by over ₦1.7 trillion. This bullish performance was fuelled by the combination of strong first-quarter earnings, a flurry of corporate dividend declarations, and renewed investor appetite for fundamentally sound stocks.
The benchmark All-Share Index (ASI) rose 0.27% week-on-week to close at 106,042.57 points, driven by strong buy-side momentum particularly in the consumer goods and industrial sectors. Correspondingly, total market capitalisation climbed to ₦66.65 trillion, reflecting widespread confidence in the equities market amid ongoing corporate disclosures.
The bullish sentiment was underpinned by impressive trading activity. The volume of shares traded surged 18.6% to 2.19 billion units, while the value of transactions jumped 34.6% to ₦75.41 billion, underscoring increased participation from both retail and institutional investors.
Top-performing stocks such as LEGEND INTERNET (up 45.6%), ABCTRANS (44.9%), and FIDSON (22.8%) led the charge, attracting speculative and growth-oriented investors. Notably, CADBURY and MAYBAKER also posted double-digit returns, as their earnings outlooks and dividend declarations boosted sentiment in the consumer goods space.
Despite gains in key segments, the market’s performance was not uniform. While the consumer goods and industrial goods indices recorded weekly gains of 2.89% and 0.40% respectively, sectors like oil and gas and insurance declined due to price corrections in stocks such as ARADEL and SUNUASSURE.
Still, with corporate earnings season in full swing and dividend announcements still rolling in, analysts at Cowry Research expect the positive momentum to persist in the short term. They advise investors to focus on “fundamentally sound stocks” and to exercise due diligence in selecting equities that offer both dividend yield and potential capital appreciation.
Beyond earnings, investors are also eyeing key macroeconomic events, including the upcoming Consumer Price Index (CPI) for April 2025, Q1 GDP figures, and the Monetary Policy Committee (MPC) meeting scheduled later in the month. These data points could shape investor expectations around interest rates and inflation, impacting portfolio strategies across the board.
With ₦1.7 trillion in gains booked in a single week, the Nigerian stock market is offering compelling opportunities. As valuations remain relatively attractive in certain sectors, the NGX could see continued inflows from both domestic and foreign investors seeking value in Africa’s most populous economy.
