Nigeria’s equities market extended its strong upward trend for a fifth consecutive week, but gains across the broader market masked a notable decline in banking and insurance stocks.
According to the Futureview Weekly Economic & Financial Markets Update, the NGX All-Share Index surged by 7.33 percent to close at 242,277.81 points. This pushed total market capitalisation up by ₦10.66 trillion to ₦155.99 trillion, driven largely by investor interest in industrial goods, oil and gas, and consumer goods sectors.
Despite the rally, the financial services sector lagged behind. The report highlighted that key indices, including NGX Banking and NGX Insurance, closed in negative territory. Specifically, the banking index declined by 5.52 percent, while the insurance index dipped by 1.13 percent, as investors shifted funds դեպի higher-performing sectors.
The divergence came during a shortened four-day trading week due to the Workers’ Day public holiday. Even so, the market’s year-to-date return climbed to 55.69 percent, underscoring sustained investor confidence.
The week also saw notable corporate activity, including a ₦2.4 billion rights issue launched by Neimeth Pharmaceuticals Plc to strengthen its capital base.
On the currency front, the naira weakened slightly at the official window. It depreciated by 121 basis points week-on-week to close at ₦1,374.94 per US dollar. Meanwhile, the parallel market remained relatively stable at around ₦1,400 per dollar, narrowing the exchange rate gap to ₦25.06.
Looking ahead, analysts are advising investors to remain cautious and focus on fundamentally strong stocks. They also pointed to external risks such as U.S. economic data and potential geopolitical developments in the Middle East particularly possible talks involving United States and Iran which could influence oil prices and overall market sentiment.
