The Nigerian equities market sustained its aggressive climb for a fifth consecutive week, though a sharp divergence in sectoral performance left investors navigating a polarised landscape. While the broader market celebrated a massive surge in valuation, the financial services sector struggled to maintain momentum.
“Banking and insurance stocks dip despite market rally,” noted the Futureview Weekly Economic & Financial Markets Update, highlighting a week where the NGX All-Share Index leapt 7.33 per cent to close at 242,277.81 points.
This bullish run, which saw market capitalisation swell by N10.66tn to reach N155.99tn, was powered primarily by heavy buying interest in industrial goods, oil and gas, and consumer goods. However, this optimism did not extend to the financial hubs of the exchange.
“All other indices finished higher except NGX CG, NGX Banking, NGX Insurance, NGX AFR Bank Value, NGX MERI Value, and NGX Sovereign Bond. Specifically, the NGX Banking index depreciated 5.52%, while the Insurance index fell 1.13%, as investors rotated capital into other high-performing sectors,” the report stated.
The divergence comes amid a shortened four-day trading week due to the Workers’ Day holiday. Despite the dip in financials, the year-to-date return for the NGXASI has climbed to an impressive 55.69 per cent. The week also featured strategic corporate moves, including Neimeth Pharmaceuticals Plc’s launch of a N2.4bn Rights Issue aimed at strengthening its capital base.
On the currency front, the naira faced renewed pressure at the official window even as the gap between market rates began to close.
“The currency depreciated by 121bps week-on-week to close at N1,374.94/US at the official NFEM window, reflecting persistent demand from corporate and institutional participants. Meanwhile, the parallel market remained relatively stable at N1,400.00/US at the official NFEM window, reflecting persistent demand from corporate and institutional participants, leading to a notable narrowing of the spread to N25.06/US$,” the update observed.
Looking ahead, analysts are urging market participants to remain disciplined, particularly as global economic triggers, ranging from US labour data to potential geopolitical shifts in the Middle East, threaten to spark fresh volatility.
“We expect investors to trade cautiously, focusing on fundamentally strong stocks with attractive valuations. Markets will closely watch potential renewed US–Iran talks, which could influence oil prices and broader risk sentiment across equities, bonds, and currencies in the coming days,” Futureview analysts advised.
