Stock Market
NGX equity investors gain N12.62trn in July
Equity investors in the Nigerian stock market gained N12.62 trillion in July over monster rallies that persisted across the trading week. The Nigerian Exchange (NGX) All Share Index finished strong and generating ₦12.62 trillion in market cap gains, Apex Securities Limited noted in a note. The bargain-hunting festival pushed year-to-date returns to an impressive +35.89% – supported significant money flows in the financial market, fear of missing out (FOMO), and earnings. Market sentiment has been led by strong interest in banking, insurer, and oil & gas sectors, presenting a powerful rally that echoed across large-cap names and broader indices. Forex developments were noteworthy, according to Apel Research, noting that the official exchange rate ended the month at ₦1,533.55/$, a modest 0.25% depreciation from June, signalling improved stability following earlier turbulence.
Meanwhile, in the parallel market, the naira weakened further, even as July marked its strongest month of the year in dollar dynamics. Rising external reserves (up by $2.15 billion) have played a key role in easing pressures on the currency front. Analysts stated that the surge in fuel prices added to the optimism. The average retail price of petrol climbed to ₦1,037.66 per litre in June, representing a 38% year-on-year jump and a 1% increase from May.
Though heavy on consumer wallets, higher pump prices have boosted revenues in energy-linked sectors and reflect ongoing subsidy reforms.
“But it wasn’t all domestic cheer: U.S. trade policy cast a shadow, as an executive order by President Trump imposed a 15% tariff on all Nigerian exports destined for American markets, effective August 7”, Apel Securities Limited said. Analysts highlighted that this move broadens the trade dispute and could weigh on non-oil export streams unless re-negotiations yield concessions before the deadline. Despite that, the macro picture remains upbeat. A composite look shows a market buoyant on robust equity gains, manageable currency moves, and liquidity improvements. At the same time, risks persist, including rising import costs and external policy headwinds. “Nigeria’s markets wrapped July like a vibrant carnival: an investor’s delight in equities, steady currency footing, sticky fuel inflation, and alert eyes on tariff risks. “The rally continues, but wise investors are keeping inflation trends and trade dynamics in close sight as they prepare for Q3 positioning ahead,” Apel Securities Limited stated.
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