The Nigerian Exchange (NGX) recorded an improved performance in the first half (H1) of this year, with the All-Share Index (NGXASI) gaining 16.57% to close at 119,978.57 points, marking renewed investor confidence in the nation’s economy despite regulatory headwinds.
In the period under review, NGXASI recorded 16.57% gain YTD with the Q2 accounting for the highest gains recorded in the local bourse in the half year.
An analysis of the market performance by Proshare Nigeria Limited’s Newsletter titled “Nigerian Capital Markets H1 2025: Who Rose, Who Fell, and What’s Next?” indicated that NGX grew by 2.6% with March correction of -1.91% due to profit-taking amid policy uncertainties.
The Q2 performance was impressive with 13.55% gain due to bullish momentum driven by favourable corporate earnings and renewed interest in consumer goods. The best month in H1 2025 based on the market’s performance indices was June, with 7.37% gain.
According to the firm’s analysts, the Q2 outstanding performance of the market was due to accelerated momentum as investor confidence strengthened following favourable corporate earnings, clarifications on banks’ dividend payment status despite regulatory forbearance concerns, and renewed interest in consumer goods and growth stocks.
During the half year, the top sector performers were Consumer Goods Index, which grew by 52.21% based on strong Q1 earnings releases and positive sentiment towards FMCG companies demonstrating resilient pricing power amid inflationary pressures
The Consumer Goods Index growth was followed by Manufacturing Growth Index with 45.13% growth driven by a rally in select mid-cap stocks, rising 20.63% in June alone as investors rotated into growth stocks ahead of H2 positioning.
Similarly, the Banking Index recorded 18.06% growth in a volatile first half with recovery after banks issued clarifications on forbearance loan status and reaffirmed dividend payment intentions, closing June with 10.04% monthly gain.
Conversely, the underperformers comprised the Oil & Gas Index, which grew by 10.12% in the H1, reflecting operational challenges, global oil price volatility, and investor reallocation away from energy stocks; and the Insurance Index, which recorded 5.23% modest gain amid broader market gains.
The firm’s report further reflected that in H1 2025, the Fixed Income Instruments’ yields dipped, with NTB yields dropping from 25.53% to 20.14% and FGN bond yields easing from 19.16% to 18.07%
The Proshare analysts attributed the decline in the Fixed Income Instruments’ yields to excess market liquidity, increased demand for short-term instruments, and investor expectations of a dovish monetary stance by the CBN.
In addition, they maintained that the bond yield compression indicated investors’ preference for long-dated instruments amid inflation moderation and relatively stable FX conditions.
The market size breakdown showed that FMDQ Debt Market accounted for 53% (N89.66trn); NGX Equities, 45% (N75.98trn); and NASD OTC, 1% (N1.96trn).
On the Commodities segment, the report showed that AFEX Commodity Index dipped by 11.24%, driven by increased supply from import fee waivers, harvest and hoarders’ sell-offs; Eko Gold grew by 46.23% to N130,000 per gram, buoyed by global gold price rally driven by safe-haven demand amid economic uncertainties and persistent naira volatility; while Premium Eko Rice dipped by 5.56% to N85,000 per bag as a result of improved harvest and imports pressured local rice prices.
