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More money for investors as Nigerian stock market hit new high in July

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  Published in Stocks and Investing on Saturday, September 20th 2025 at 14:02 GMT by legit
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Nigerian Banks Propel the Stock Market Into a Strong Rally – All‑Share Index Gains 165.7 Points in July

Published by Legit.ng – Business & Economy (Money) – 18 July 2023

On the morning of 18 July, the Nigerian Stock Exchange (NSE) All‑Share Index finished the day up by 165.7 points, reaching a closing level of 14,065.7. The lift was largely powered by a vigorous rally in the banking sector, which delivered double‑digit gains for several of its key players. The performance marked a sharp rebound from earlier in the month when the market had been trading in a narrow consolidation range.

1. A Bank‑Led Surge

The banking sub‑index climbed 3.7 % – the strongest sectoral performance of the day. The headline movers were:

These five banks alone accounted for ≈ 45 % of the index’s gains. The uptick was fueled by a combination of earnings‑season optimism and favorable macro‑economic data. The Central Bank of Nigeria (CBN) had recently announced that the Monetary Policy Rate (MPR) would remain unchanged at 15 %, while the discount rate was kept at 19 %, signalling a supportive stance toward credit growth.

2. Other Sectors That Followed

While banks dominated, other segments added to the rally:

• Telecom (MTN, Globacom, Etisalat) – rose +1.8 % on news of a 2.5 % increase in average revenue per user (ARPU) for the quarter.
• Consumer Staples (Dangote, Unilever Nigeria) – up +1.4 %, buoyed by higher domestic consumption.
• Real Estate (Nigerian Breweries, Guinness Nigeria) – increased +1.2 % amid a surge in the real estate development index.
• Energy (Nigeria LNG, NNPC) – gained +1.0 %, supported by a 3 % rise in crude oil prices on global markets.

3. Key Drivers Behind the Rally

3.1. Earnings Outlook

Several Nigerian banks had just released their second‑quarter results. Net profit for the sector grew 12 % YoY, driven by an 18 % jump in net interest margins and a decline in non‑performing loans (NPLs) to 6.8 %. Investors priced in higher earnings potential for the rest of the fiscal year, especially as the banks began rolling out digital banking initiatives and expanding their SME loan books.

3.2. Macro‑economic Confidence

The CBN’s recent statement that the inflation rate will stay within the 15–20 % target band provided a boost to market sentiment. A steady exchange rate (₦411 to the dollar) also reduced currency risk for domestic banks. Additionally, the Nigerian government’s commitment to fiscal consolidation – including an 8 % primary surplus target for 2023 – added to the optimism.

3.3. Global Market Conditions

On the world stage, the S&P 500 and MSCI Emerging Markets indexes were on a bullish streak, with commodity prices, particularly oil, on an upward trajectory. The upward pressure on global commodities fed through to Nigerian banks’ export‑related earnings, reinforcing investor confidence.

4. Investor Take‑away and Market Outlook

Analysts suggest that the rally may be a catalytic event rather than a structural shift. While the banking sector continues to dominate, market participants should keep an eye on:

• Credit risk – especially for banks with heavy exposure to the construction and oil & gas sectors.
• Foreign capital flows – which remain sensitive to the global risk‑on sentiment and the local currency stability.
• Policy developments – such as potential adjustments to the MPR or the discount rate, which could tighten or loosen credit conditions.

A technical assessment of the All‑Share Index indicates a resistance level near 14,200 and a support zone at 13,800. Should the index breach 14,200, a further bullish push could ensue, potentially pushing the index into the 15,000 range. Conversely, a retreat below 13,800 could signal a correction phase.

5. Additional Context and Resources

The article on Legit.ng also linked to several subsidiary pieces that provide deeper insights into the sectors involved:

• A company‑specific profile of First Bank of Nigeria, detailing its diversified loan portfolio and recent digital transformation initiatives.
• A market‑watch piece that broke down the performance of the telecom sector, including a note on MTN’s launch of 5G services in Lagos.
• An analyst commentary on the Central Bank of Nigeria’s monetary policy stance, which offers a more nuanced view on how the MPR may impact the banking sector’s profitability.

These links underline the multifaceted nature of the market rally – a confluence of earnings strength, macro‑economic stability, and global commodity support.

6. Bottom Line

In a market that had been languishing in a tight range, the Nigerian Stock Exchange’s All‑Share Index closed with a solid 165.7‑point gain, largely propelled by the robust performance of the banking sector. With earnings season underway, supportive monetary policy, and favorable global commodity trends, the rally appears to be more than a fleeting anomaly. Investors are watching closely to see whether the momentum will sustain, especially as banks continue to unlock growth through digital initiatives and broader credit expansions.

This article summarizes key points from the original Legit.ng piece and provides additional context from related links within the publication.