Nigerian stock market report for Week Two of August 2025

Nigerian Stock Market Weekly Report

If the last few weeks were a rally, last week was a regime change. The NGX All-Share Index didn’t just rise; it surged +3.18% to 145,754.91, lifting the market capitalization to ₦92.215 trillion. 

Under the hood, flows told an even bigger story: 8.736 billion shares changed hands across 180,290 deals, yet turnover value eased to ₦134.58 billion. That’s classic rotation: more shares, less naira, into fast-moving, lower-priced names.

Where did the torque come from? Insurance turned into a five-day bull market of its own: the NGX Insurance Index soared 41%, and the entire gainers’ table lit up with insurers posting 46%–60% weekly returns. 

Meanwhile, Banking (-0.75%) took a breather after its recent run, even as Industrial Goods (+8.73%) and Consumer Goods (+8.27%) rediscovered momentum.

Breadth confirmed it wasn’t just a handful of headlines doing the lifting: 66 advancers vs. 41 decliners. Liquidity was concentrated as well. 

Financial Services drove 85.65% of the total volume, and three tickers (Linkage Assurance, Consolidated Hallmark, and Universal Insurance) alone captured 36.57% of all shares traded. In plain English: smart money piled into where the tape was hottest, and it was very hot in insurance.

Read our stock market report for the first week of August 2025 here.

Key Market Metrics Dashboard

Market Analysis Narrative

Here’s what really stood out:

• Volume surge, value slip – The near-doubling of traded shares with a 10% drop in naira turnover screams “rotation into penny and low-cap stocks,” particularly in insurance.
  
• Insurance mania – Eight of the top 10 gainers were insurers, each up over 46%. Mutual Benefits (+60.44%), AIICO (+59.82%), and Royal Exchange (+59.33%) led the charge.
  
• Banking pause – NGX Banking Index’s -0.75% suggests mild profit-taking after recent rallies.
  
• Breadth improvement – More gainers (66) and fewer losers (41) than the prior week hint at broader participation.
  
• Top 3 stocks by volume – Linkage Assurance, Consolidated Hallmark Holdings, and Universal Insurance together captured 36.57% of total volume.
  

Winners & Losers

Top 10 Gainers

Top 10 Decliners

Sector Performance

Financial Services dominated volume with 85.65% share, while Agriculture and Services followed distantly.

ETFs & Bonds

• ETPs: 948,445 units worth ₦43.77m (up from ₦25.22m prior week).
  
• Bonds: 85,480 units worth ₦79.36m (vs 1.36m units worth ₦1.118bn prior).

Corporate Actions & Market Events

• Ex-Dividends:
  
  • C & I Leasing – ₦0.10 (6 Aug 2025)
    
  • Transcorp Hotels – ₦0.10 (8 Aug 2025)
    
• New Listings: July 2025 FGN Savings Bonds listed (2- and 3-year tenors).
  
• NGX Non-Interest Finance Board launched, hosting Shari’ah-compliant equities, bonds, and ETFs.
  

What This Means for Your Investment Strategy

First, respect the rotation. Volume nearly doubled while value slipped—textbook signal that traders are crowding into lower-denomination, higher-beta counters (insurance, select services). When you see that mix, momentum can persist—but reversals are sharp. Size positions accordingly.

Conservative investors (capital preservation + dividends):

• Keep your core in liquid, high-quality names (tier-1 financials, large consumer/industrial leaders) and treat insurance exposure as a tactical tilt, not a new core.
  
• Blend defensives (staples, telco-like cash generators) with a measured slice of Industrial Goods, which is validating strength.
  
• Reinvest dividends and use any market-wide pullback to top up quality rather than chase the week’s fastest risers.
  

Growth-oriented investors (seeking upside with risk):

• Lean into sectors confirming trend: Industrial Goods and Consumer Goods both posted strong weekly gains—pair a leader with a second-line beneficiary to capture operating-leverage spillover.
  
• In Insurance, prioritize issues with sustained depth on the bid (not just prints at the close) and improving daily value traded; momentum is your friend until liquidity thins.
  
• Pyramid entries: start partial, add only on advancing breadth days (net advancers > decliners) and rising traded value.
  

Value hunters (patient, fundamentals-first):

• Use this surge to let winners come to you; don’t chase 40–60% weekly moves. Instead, scan sectors that lagged (Banking -0.75%, Growth -7.91%) for fundamentally solid counters where price dislocation is sentiment-driven.
  
• Focus on names showing relative strength stabilization (smaller down days, higher closes on up days) and a pickup in deal count—often the tell before re-rating.
  

Tactical traders (short-term):

• Ride the tape but define exits upfront. Track:
  
  1. Breadth (advancers vs decliners),
     
  2. Turnover value (needs to trend higher to validate rallies),
     
  3. Sector leadership consistency (insurance staying top 3 by both volume and value, not just volume).
     
• If value dries up while prices keep rising, tighten stops—froth fades fast.
  

Risk controls & signals to watch next week:

• Liquidity mix: A continued rise in both volume and value would upgrade the rally from speculative to conviction-led.
  
• Leadership handoff: If Industrials/Consumers continue to outperform while Insurance cools gently (not collapses), the market’s foundation is strengthening.
  
• Breadth: Aim for 3+ positive breadth sessions out of 5; anything less raises reversal risk.

Forward Look

• Key Levels: ASI support at 143,500; resistance near 147,500.
  
• Catalysts: Insurance rally continuation, earnings releases, NGX Non-Interest Finance Board traction.
  
• Risk Flags: Value rotation into low-cap names can reverse quickly; watch liquidity trends.
  

Please note that this analysis reflects market observations and institutional patterns, rather than personalized investment advice. Always conduct your due diligence and consider your risk tolerance before making investment decisions.