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| Investors celebrate record gains amid market rally |
The local share market has stunned investors with a windfall of N25.7 trillion in just seven months. A mix of policy steps and macro shifts drove both local and foreign money into equities .
Money poured in as the central bank steadied the naira and cut rates. That pushed traders out of low-yield bonds and into stocks. The All Share Index rose from 102,926.40 points in December 2024 to 139,863.53 in July 2025 .
Domestic investors led the charge. They outpaced foreign buyers month after month, shunning volatile foreign flows. The push for “home-grown” capital has given local traders more control of market swings.
Even so, experts warn gains may not last. They point to crowded trades, stretched valuations, and looming corrections. They advise caution for new buyers who chase fast returns without risk checks.
The market capped N88.4 trillion in total value by month’s end. That’s up from N62.663 trillion in December 2024 . The jump underscores how hot equities have become. Bond yields fell below 10 percent in July. That left fixed-income almost out of favor.
July itself was the best month of the year. Stocks jumped 16.5 percent, nearly half of the year-to-date growth . Traders say that burst came as banks, industrial firms, and consumer names all rallied together.
Trading activity rose sharply too. Investors traded 22 billion shares in July, up from 13.8 billion the month before. That extra volume shows even cautious players have joined the party .
By sector, industrial goods led the charge with a 71.9 percent gain. That was on the back of cement makers and heavy manufacturers . Banks were next, up 49.3 percent as lenders rode a wave of renewed credit growth.
Insurance stocks saw more than 23 percent gains, while consumer goods firms climbed 11 percent. Everyday brands, from cocoa to toothpaste, drew steady interest as buyers bet on steady consumer demand.
The oil and gas group was the only laggard. It dipped 10.16 percent. Traders note that weak global crude prices and local drilling delays pulled that sector down .
Top gainers for July included Tripple Gee, which soared 88.44 percent, and Lafarge Africa with a 70.87 percent jump. Cement maker BUA Cement climbed 41.51 percent on strong earnings. Chemical & Allied and Cutix also drew cheers for double-digit returns .
Heavyweights Dangote Cement and Lafarge Africa drove much of that industrial rally. Together they account for a big slice of the index’s value. Their gains lifted the whole industrial group.
In banking, Wema Bank led with a 47.16 percent surge. UBA and Zenith Bank followed with 40.21 percent and 34.33 percent gains respectively . High trading volumes showed renewed faith in bank stocks after years of turmoil.
Analysts at Cordros Capital say they expect the rally to last into year-end. They point to improving corporate profits and steady policy settings . Yet some experts at High Cap Securities caution against calling it a permanent boom. They warn that markets rarely rise in a straight line. Corrections may arrive once valuations get too stretched .
They note that falling interest rates drove money into equities. But if rates rise again, bond yields may lure cash back. That could deflate stock prices fast. A shock to oil prices, currency swings, or policy change could also ignite a sell-off.
Still, many see a strong case for staying invested. The mix of stable macro policies and reform chatter has lifted confidence. Key sectors like manufacturing and banking show early signs of recovery after years of erratic growth.
Investors say they feel safer betting on local firms now that the naira is more stable. They also see value in firms that bore the brunt of past currency losses. As those companies heal, their stocks look cheap on paper.
Foreign traders have not been idle either. They pulled back slightly but still hold high-yield pockets in banks and industrial plays. But many warn that foreign pull-outs could widen moves if global conditions sour.
On balance, the rally has mixed players. Some cheer record returns as proof of reform. Others fear a bubble. Both sides agree that caution is wise.
Looking ahead, traders will watch Q3 earnings closely. Will profits match lofty prices? That answer could set the tone for the rest of 2025.
For now, the windfall shines a light on how policy and reform can unlock markets. Yet it also shows how fragile gains can be. A well-timed exit or stop-loss may be the smart move for wavering investors.