By Chioma Obinagwam
Bullish sentiment swept through the Nigerian Exchange this week, fueled by investor optimism over the Monetary Policy Committee’s (MPC’s) decision to hold interest rates steady and a flurry of strong second-quarter earnings.
Confiance News gathered that BUA Cement Plc’s share price closed 9.4% stronger, Presco Plc closed 22.5% better, Lafarge Africa Plc gained 9.7%, Oando Plc notched 18.9%, and Dangote Sugar Refinery Plc’s share price, which inched up by 14.3%, led the charge, igniting a rally that pushed the NGX All-Share Index up 2.2% week-on-week to 134,452.93 points. Month-to-date and year-to-date returns now stand at +12.1% and +30.6%, respectively.
Yet beneath the surface, trading activity softened. Volume and value dipped 78.9% and 77.6%, respectively, compared to the prior week. But the market’s tone remained confident—less noise, more signal—as investors zeroed in on high-conviction plays.
Sectoral performance was broadly positive. The Industrial Goods sector climbed 4.7%, Insurance rose 3.1%, Consumer Goods gained 2.8%, Banking added 1.8%, and Oil & Gas edged up 0.9%. The market didn’t just move—it marched, with every sector stepping in rhythm.
Reacting Cordros Research, a subsidiary of Cordros Capital, a finance and investment firm, said that looking ahead, the full rollout of the First Half (H1) 2025 earnings season is expected to shape sentiment. With lower stop rates at recent auctions, investors are likely to rotate into equities, chasing better risk-adjusted returns as fixed-income yields decline. The stage is set—and the spotlight is on performance.
”In the near term, we expect the full commencement of the H1-25 earnings season to drive market sentiment. With lower stop rates at auctions, we anticipate a gradual rotation into equities as investors reposition for improved risk-adjusted returns amid declining fixed-income yields,” it said.
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