The Nigerian stock market continued its bullish trajectory this week, with the All-Share Index (ASI) surpassing 130,000 points and total market capitalization reaching a record ₦82.41 trillion. This performance is driven by growing optimism that the Central Bank of Nigeria (CBN) could ease monetary policy at its upcoming Monetary Policy Committee (MPC) meeting on July 21St-22ND, 2025.
As Treasury yields decline, investors are shifting funds from fixed-income assets to equities. The market has recorded a 26.58% year-to-date return, with notable strength in the banking, consumer goods, and insurance sectors.
Supporting this sentiment, Nigeria’s June inflation slowed to 22.22% from 22.97% in May, largely due to lower energy costs and base effects. This deceleration strengthens speculation that the CBN may adopt a more accommodating stance.
Analysts remain cautiously optimistic. Comercio Partners foresees steady rates with minor adjustments to encourage credit growth. Cardinal stone anticipates a moderate rate cut later in the year, while Future-view projects sustained positive momentum.
With inflation easing, a stabilizing naira, and favourable macroeconomic indicators, investor sentiment remains strong. All eyes now turn to the MPC decision, which could further bolster market gains.
