Insurance Act and Strong Q2 Earnings Fuel 3.2% Weekly Stock Market Surge
The Nigerian stock market closed last week on a high note, buoyed by a combination of legislative reform, corporate earnings, and positive macroeconomic developments. The newly enacted Insurance Industry Act, coupled with robust second-quarter results and favorable market conditions, drove the NGX All Share Index (ASI) up by 3.2% week-on-week (WoW).
By the week’s close, the ASI stood at 145,754.91 points, up from 141,203.05 points the previous week—marking the 11th consecutive week of bullish performance. Market capitalization also saw a hefty gain, adding over ₦2.214 trillion to reach ₦92.214 trillion, compared to ₦89.372 trillion the week before.
Market watchers attribute this performance to sustained bargain hunting, strong investor reaction to the insurance reforms, and improved earnings across key sectors.
Key stock drivers included:
• BUA Foods rising 18.9%
• Dangote Cement up 9.2%
• BUA Cement gaining 13.9%
• AIICO Insurance soaring 59.8%
• Cornerstone Insurance jumping 54.5%
• NEM Insurance climbing 29.9%
These performances pushed Month-to-Date (MtD) and Year-to-Date (YtD) returns to +4.2% and +41.6% respectively.
Trading activity showed a mixed picture—volume surged 80.2% WoW, while value dipped 10.1% WoW.
Sector performance was broadly positive:
• Insurance Index soared 41.0%
• Industrial Goods Index up 8.7%
• Consumer Goods Index climbed 8.3%
• Oil & Gas Index rose slightly by 0.2%
• Banking Index was the sole laggard, falling 0.8%
Analyst outlook:
• Cordros Research expects some profit-taking this week but also anticipates continued bargain hunting, especially as lower fixed-income yields make equities attractive.
• InvestData Consulting highlights growing investor confidence, positive corporate sentiment, and insurance sector reforms as key catalysts, while urging disciplined investing with close attention to sector earnings and macro trends.
The Nigerian stock market closed last week on a high note, buoyed by a combination of legislative reform, corporate earnings, and positive macroeconomic developments. The newly enacted Insurance Industry Act, coupled with robust second-quarter results and favorable market conditions, drove the NGX All Share Index (ASI) up by 3.2% week-on-week (WoW).
By the week’s close, the ASI stood at 145,754.91 points, up from 141,203.05 points the previous week—marking the 11th consecutive week of bullish performance. Market capitalization also saw a hefty gain, adding over ₦2.214 trillion to reach ₦92.214 trillion, compared to ₦89.372 trillion the week before.
Market watchers attribute this performance to sustained bargain hunting, strong investor reaction to the insurance reforms, and improved earnings across key sectors.
Key stock drivers included:
• BUA Foods rising 18.9%
• Dangote Cement up 9.2%
• BUA Cement gaining 13.9%
• AIICO Insurance soaring 59.8%
• Cornerstone Insurance jumping 54.5%
• NEM Insurance climbing 29.9%
These performances pushed Month-to-Date (MtD) and Year-to-Date (YtD) returns to +4.2% and +41.6% respectively.
Trading activity showed a mixed picture—volume surged 80.2% WoW, while value dipped 10.1% WoW.
Sector performance was broadly positive:
• Insurance Index soared 41.0%
• Industrial Goods Index up 8.7%
• Consumer Goods Index climbed 8.3%
• Oil & Gas Index rose slightly by 0.2%
• Banking Index was the sole laggard, falling 0.8%
Analyst outlook:
• Cordros Research expects some profit-taking this week but also anticipates continued bargain hunting, especially as lower fixed-income yields make equities attractive.
• InvestData Consulting highlights growing investor confidence, positive corporate sentiment, and insurance sector reforms as key catalysts, while urging disciplined investing with close attention to sector earnings and macro trends.