Investor confidence is rising as the NGX nears its strongest gains since 2020, driven by steady earnings, falling inflation, and a stabilising naira.
Banks, industrials, insurers, and consumer goods firms lead the rally, while oil and gas lag behind.
The All-Share Index rose 39.5% by early October.
Analysts expect it to surpass 154,000 points by year-end.
Fundamentals Drive Investor Rally
The surge comes from solid fundamentals.
Falling inflation, a steadier naira, and strong corporate earnings boost investor confidence.
Institutional investors continue supporting the market.
Banks, industrials, insurers, and consumer goods firms thrived, but oil and gas struggled.
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Quarterly Trends And Risks
The year’s performance unfolded in chapters.
Q1 saw cautious trading, lifting the index just 2.7%.
In Q2, falling yields and disinflation revived confidence.
The market jumped 13.6%.
Q3 became the strongest, rising 18.9%.
Earnings remained robust, valuations attractive, and insurance stocks spiked in August.
Uncertainty remains.
The 25% capital gains tax could cause short-term volatility if authorities apply it retrospectively.
Across Africa, Nigeria competes strongly.
Ghana and Kenya posted gains, but Nigeria’s depth, liquidity, and dividends attract stable investors.
Yet, if the market maintains its trajectory, 2025 may show Nigeria’s stock market delivering strong returns and growing investor appeal.
