Nigerian Stock Market Hits Record Surge: What’s Driving the Rally?

By Trustsdeck Newsroom | August 1, 2025

The Nigerian stock market just delivered its strongest performance of the year, and everyday investors are asking the big question: What’s driving this momentum, and is it sustainable? The NGX All-Share Index jumped an impressive 16.57% in July, closing the month at 139,863.5 points, up from 119,980.4. This marks the highest monthly gain in 2025, continuing a bullish rally that began in June.

Market in Motion: Why July Was a Record Month

Investor appetite surged, with 22 billion shares traded, up from 13.8 billion in June. The market capitalization swelled from ₦75.80 trillion to ₦88.4 trillion, signaling broad-based optimism. So far in 2025, stocks have ended five of seven months in the green, with a year-to-date return of 35.9%.

“We’re seeing renewed confidence in the local bourse across institutional and retail players,” said a Trustsdeck equity analyst. “Valuations are rising, and liquidity is returning especially in key sectors.”

Industrials Steal the Spotlight

The Industrial Goods sector led the charge with a 34.28% return, powered by:

• Tripple Gee (+88.44%)
• Lafarge (+70.87%)
• Meyer Paints (+64.18%)
• BUA Cement (+41.51%)

Heavyweights like Dangote Cement and Lafarge Africa anchored the sector’s impressive gains.

Banks Back in the Game

The Banking sector recorded a robust 25.78% gain, making it the highest-traded sector with 6.48 billion shares exchanged.

• Wema Bank (+47.16%)
• UBA (+40.21%)
• Zenith Bank (+34.33%)
• Access Holdings (+26.24%)

Other banks like GTCO, Ecobank, and FirstHoldco also saw significant gains.

Insurers Rally

Insurance stocks continued their climb, with the NGX Insurance Index rising 17.74%.

• Sovereign Trust (+41.04%)
• NEM Insurance (+34.08%)
• AIICO (+33.54%)
• Mansard (+26.49%)

Trading volume stood at 3.27 billion shares a strong sign of growing investor interest.

Consumer Goods Firms Bounce Back

The Consumer Goods sector gained 11.14%, reflecting resilience in retail-driven demand.

• Cadbury Nigeria (+63.86%)
• McNichols (+60.87%)
• Dangote Sugar (+53.61%)
• Unilever (+40.23%)
• Guinness Nigeria (+33.01%)

Oil & Gas Takes a Breather

Despite the broader rally, the Oil and Gas sector lagged behind with a modest 1.72% gain.

• Oando rose (+16.32%)
• Aradel Holdings edged up (+3.01%)
• Most other stocks in the sector closed July in the red.

What This Means for Investors

• Retail investors are returning to the market, riding momentum in banks, manufacturers, and consumer brands.
• Foreign investor confidence appears to be improving amid macroeconomic reform signals.
• Sectors to watch: Industrials and banking continue to attract the largest share of funds.

“Momentum favors risk-takers in the short term, but long-term investors should remain disciplined,” said Trustsdeck’s Lead Strategy Editor.