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The Nigerian Exchange has witnessed a significant boost in investor confidence, driven by robust first-quarter 2025 earnings and a steady stream of full-year 2024 dividend announcements. Over the past week alone, market capitalisation has increased by approximately N180 billion.
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The all-share index (ASI) has extended its winning streak, climbing 0.27% to close at 106,042.57 points. This growth is attributed to better-than-expected corporate results and attractive dividend yields, which have generated broad-based enthusiasm among investors.
Investor participation has picked up notably, with deal count surging nearly 37% to 70,329 transactions and trading volume jumping 18.6% to 2.19 billion units. The value of transactions leapt by 34.6% to N75.41 billion, underscoring a shift toward higher-value positions
The market’s breadth remained positive, with 52 gainers versus 36 decliners, giving a breadth ratio of 1.44 times. However, performance across sectors was mixed. The consumer goods sector led the charge, powering the market’s advance with a 2.89% uptick. The industrial goods segment also managed to stay in positive territory, recording a 0.4% gain.
In contrast, profit-taking weighed on the banking, oil and gas, insurance, and commodities sectors. Banks gave back 0.38% amid sell-offs in Access Corporation and Ecobank, even as most lenders reported strong results and interim dividends.
Dividend declarations have been a further catalyst for positive sentiment. Dangote Sugar Refinery announced a N3.50 interim dividend per share payable in June, Guaranty Trust Holding Company declared a N2.00 final dividend to be paid in July, and UPDC REIT confirmed a N0.1 per-unit distribution, yielding over 8% at current prices.
“We expect a generally positive market outlook for the coming week, driven by ongoing earnings and dividend announcements,” according to analysts at Codros Capital. However, they caution that trading sentiment may vary, with some investors likely engaging in selective stock picking and profit-taking after the recent rally.
Cowry Asset Management Research advises investors to focus on fundamentally sound stocks, emphasising the importance of due diligence in portfolio selection as they navigate potential market volatility. The market is expected to closely watch critical macroeconomic data, including the April 2025 Consumer Price Index (CPI) and first-quarter GDP figures
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Jonathan Nwokpor
