July 8, 2025
Lagos, Nigeria – Bullish momentum is expected to persist on the Nigerian Exchange Limited (NGX) this week as investors position ahead of the half-year (H1) earnings season, boosting optimism in the local bourse.
Market analysts project that the rally, which gained traction in recent sessions, will continue as portfolio rebalancing accelerates and anticipation mounts for strong corporate earnings across key sectors. Notably, the banking, consumer goods, and industrial sectors are expected to post improved results on the back of interest rate adjustments and resilient demand.
“We are likely to see sustained interest in fundamentally sound stocks as investors reallocate capital in preparation for interim dividend declarations and earnings surprises,” said Opeyemi Ajayi, a Lagos-based equities analyst.
The NGX All-Share Index has already posted a year-to-date return of 16.57% as of June 2025, with select stocks recording triple-digit gains. Market sentiment remains upbeat, buoyed by macroeconomic policy adjustments, improved foreign exchange stability, and increased retail participation.
However, some analysts caution that profit-taking may set in later in the earnings season, especially if results fall short of expectations or if external headwinds like oil price fluctuations and inflationary pressures persist.
In the meantime, investors are advised to remain cautious, diversify holdings, and focus on companies with strong fundamentals and clear earnings visibility, as the NGX navigates one of its most closely watched financial disclosure periods of the year.
