For the first time in several months, the insurance index led the gainers’ chart on the Nigerian Exchange Limited (NGX) with 41 per cent, following over 50 per cent price appreciation recorded in Mutual Benefits Assurance, AIICO Insurance, Royal Exchange Insurance, Sovereign Trust Insurance (SOVRENINS) and Cornerstone Insurance Plc last week.

The sector’s rally was fuelled by renewed investor confidence following the signing of the New Insurance Act last week. The signing triggered optimism about imminent recapitalisation and far-reaching regulatory reforms.

Investors anticipate improved industry compliance, operational efficiency and capital appreciation.A breakdown of performance in the sector showed that Mutual Benefits Assurance led the rally with a 60 per cent rise, closely followed by AIICO Insurance, which climbed 59.8 per cent. Royal Exchange advanced by 59.3.per cent, Sovereign Trust Insurance gained 59.1 per cent while Cornerstone Insurance appreciated by 54.5 per cent.

The industrial index followed with 8.73 per cent. The sector gain was due to price appreciation of 13.9 per cent and 9.2 per cent recorded by cement-producing giants – BUA Cement and Dangote Cement. The consumer goods index trailed with an 8.3 per cent weekly gain, bolstered by strong upward momentum in BUA Foods, Guinness Nigeria and Ellah Lakes.

The oil and gas sector posted only a modest 0.17 per cent uptick, supported by mild advances in Oando and Japaul Gold & Ventures. In contrast, the commodities sector retreated by 2.33 per cent, weighed down by losses in Total and Presco. The banking sector slipped by 0.75 per cent as investors took profits from major operators, including Zenith Bank, Fidelity Bank and Access Holdings.

On the losers’ table, Living Trust recorded the steepest decline of the week, shedding 24.1 per cent. Academy Press followed with an 18.2 per cent drop, while TIP fell by 12.7 per cent. UPDC Real Estate Investment Trust (UPDCREIT) lost 11.8 per cent, and Legend International (LEGENDINT) declined by 11.7 per cent, reflecting pockets of weakness in a generally bullish market environment.

The all-share index advanced by 3.18 per cent to close at 145,754.91 points. Also, the market capitalisation surged by N2.84 trillion to N92.21 trillion, bringing the year-to-date return to 41.61 per cent.

Investor sentiment remained largely positive throughout the week, as 66 stocks gained while 41 constituted the losers’ chart. Analysts at Cowry Asset Management Limited said trading on the Nigerian Exchange Limited will likely deliver a mixed performance this week as bullish and bearish
forces continue to compete for dominance in shaping market direction.

While acknowledging the possibility of intermittent profit-taking and sectoral pullbacks, the analysts maintained that the underlying sentiment in the market remains largely positive, underpinned by sustained interest in fundamentally strong stocks and sectors with compelling growth narratives.

They noted that investors are expected to maintain an active focus on the insurance, consumer goods, and select industrial goods counters, given their recent performance, favourable valuations, and solid growth prospects.

The insurance sector is likely to remain at the centre of market activity following its recent surge, which has been driven by optimism over the newly enacted Insurance Act, anticipated recapitalisation measures and broader regulatory reforms aimed at strengthening the sector’s competitiveness. This reform-driven outlook, coupled with robust price momentum, is expected to sustain buying interest from both institutional and retail players.

According to Cowry Asset Management, this week may also see further portfolio realignment as investors recalibrate their holdings in response to evolving sectoral opportunities, anticipated corporate earnings announcements, and shifting macroeconomic indicators.

Factors such as inflation trends, currency stability, and policy pronouncements will continue to guide investment decisions, while sector-specific developments are likely to shape short-term positioning.

Overall, the analysts believed the interplay between market optimism and profit-taking pressures would define the trading pattern in the days ahead. However, they emphasised that the broader market trajectory still leans toward cautious optimism, with opportunities for selective accumulation in sectors poised to benefit from structural reforms, earnings resilience, and improving macroeconomic conditions. Cordros Capital projected choppy trading this week as profit-taking on recent gainers temper the market’s momentum.

The firm noted that while some investors are expected to lock in gains from the previous week’s rally, bargain hunting in select fundamentally strong counters is likely to persist, providing a measure of support to overall market activity.

According to the analysts, the medium-term outlook for equities remains broadly positive, aided by the sustained moderation in fixed-income yields, which continues to encourage portfolio reallocation into the stock market.

They explained that lower yields in the fixed-income space reduce the relative attractiveness of debt instruments, prompting investors to seek higher returns in equities, particularly in sectors with strong fundamentals and growth prospects.

Cordros Capital added that this yield-driven rotation into equities, combined with sector-specific opportunities and reform-led optimism in key industries such as Insurance and Consumer Goods, should help underpin market resilience in the weeks ahead, even as intermittent bouts of profit-taking remain part of the trading landscape.

The financial services industry (measured by volume) led the activity chart with 7.5 billion shares valued at N70.9 billion traded in 77,227 deals; thus contributing 85.7 per cent to the total equity turnover volume.

The agriculture industry followed with 201.906 million shares worth N7.9 billion in 11,450 deals. Third place was the services industry, with a turnover of 191.9 million shares worth N2.5 billion in 10,595 deals.

Trading in the top three equities, namely Linkage Assurance Plc, Consolidated Hallmark Holdings Plc, and Universal Insurance Plc (measured by volume), accounted for 3.195 billion shares worth N6.6 billion in 3,964 deals, contributing 36.6 per cent to the total equity turnover.