The Nigerian Exchange (NGX) delivered another strong performance on Thursday, August 7, 2025, posting a market value gain of N479 billion, fueled by surging investor confidence in the insurance and consumer goods sectors.
Riding high on the momentum of recent reforms and upbeat earnings reports, the benchmark All-Share Index (ASI) climbed by 756.83 points, representing a 0.52% increase, to close at 146,570.69. This marks a 4.8% gain for the week and extends the market’s year-to-date growth to an impressive 42.4%.
Insurance Stocks Ignite Market Optimism
The standout sector of the day was insurance, with the NGX Insurance Index spiking by 8.76%. Leading the charge was AXA Mansard, which gained the maximum 10% to close at N13.31 per share. Cornerstone Insurance, AIICO Insurance, and other key players also hit the 10% limit, reflecting renewed investor enthusiasm following the signing of the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
President Bola Tinubu signed the landmark bill earlier this week, setting the stage for a comprehensive overhaul of the industry. The reform is expected to enhance sector capitalization, enforce compulsory insurance policies, and strengthen corporate governance — a move analysts say could significantly boost the sector’s contribution to GDP.
Unsurprisingly, trading volume for insurance stocks surged, with the sector recording a 299.15% jump on Wednesday, just one day after the reform bill was signed into law.
Consumer Goods Sector Delivers Solid Gains
Also driving Thursday’s rally was the consumer goods sector, buoyed by positive earnings results and strong investor sentiment. The NGX Consumer Goods Index rose 4.08%, with Guinness Nigeria gaining 9.98% to close at N141.60, and University Press hitting the 10% ceiling.
Analysts attribute the bullish sentiment to solid fundamentals, robust consumer demand, and the defensive appeal of dividend-paying stocks amid ongoing economic headwinds.
Market Activity: Volume Up, Turnover Down
Trading activity was brisk, with 1.98 billion shares exchanged across 35,282 deals — a 16% increase in volume compared to the previous day. However, turnover declined by 10% to N27 billion, suggesting a shift toward lower-priced but high-volume stocks, particularly in insurance.
Top traded stocks by volume included:
- Linkage Assurance: 372 million shares
- Prestige Assurance: 249 million shares
- Veritas Kapital Assurance: 182 million shares
- Sterling Bank: 121 million shares
Decliners Struggle Amid Bullish Mood
Despite the overall market rally, some stocks slipped into negative territory. Chams Plc led the losers, dropping 9.94% to close at N2.90. Austin Laz & Company fell 9.83%, while Caverton Offshore declined 9.65%. UAC of Nigeria also lost 9.44%, reflecting ongoing sector-specific challenges.
Looking Ahead
With sweeping reforms underway in the insurance sector and consumer confidence on the rise, analysts expect continued momentum in both sectors. Regulatory support, improved earnings, and macroeconomic policy shifts are likely to sustain investor appetite — especially for stocks with strong fundamentals and attractive yields.
As Nigeria pushes toward its $1 trillion economy target, market watchers will be closely monitoring how the newly signed NIIRA 2025 legislation shapes the investment landscape in the weeks ahead.
