The Nigerian Exchange Limited (NGX) concluded the trading week on a powerful upswing, with market capitalization surging by a staggering N1.08 trillion on Friday, December 19, 2025. This 1.13% single-day gain underscores a potent year-end rally, pushing the broader market index higher and solidifying a remarkable year for Nigerian equities.
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By Taiye Olayemi
Lagos, Dec. 19, 2025 (NAN)
Market Performance at a Glance
The market’s total valuation rose from N95.856 trillion at the opening bell to N96.936 trillion at the close. Mirroring this, the All-Share Index (ASI)—the benchmark indicator for market performance—gained 1,694.33 points (1.13%) to settle at 152,057.38, up from 150,363.05 recorded the previous day. This advance propelled the Year-To-Date (YTD) return to an impressive 47.73%, a clear signal of sustained investor confidence and risk appetite throughout 2025.
Drivers of the Rally: Beyond the Headline Numbers
The bullish sentiment was broad-based, with 34 stocks advancing against 24 decliners, resulting in a positive market breadth. However, the rally was notably driven by heightened interest in specific sectors and stocks:
- Top Gainers: Union Dicon Salt and Austinlaz led the charge, both appreciating by the maximum daily limit of 10%. They were closely followed by Tantalizer (+9.80%), Aluminium Extrusion Industries (+9.78%), and Champion Breweries (+9.71%). This concentration in consumer goods and industrial stocks suggests investors are positioning in companies perceived to benefit from domestic economic activities.
- Understanding the “Year-End Rally”: The observed surge is a classic example of a seasonal market phenomenon. Portfolio managers and individual investors often engage in “window dressing”—adjusting holdings to show strong performing assets in year-end reports. Additionally, anticipation of corporate actions (like dividend declarations) in the new year and the reinvestment of year-end bonuses can create consistent buying pressure in December.
A Closer Look at Trading Activity: Volume vs. Value
A nuanced analysis of the day’s trading reveals a fascinating divergence: while the total value of traded equities dipped, the volume of shares exchanged skyrocketed.
- Friday: 1.5 billion shares worth N21.8 billion changed hands in 25,669 deals.
- Previous Day (Thursday): 839.8 million shares worth N32.8 billion were traded in 23,211 deals.
This pattern—higher volume at a lower total value—often indicates robust trading in mid- and small-cap stocks (which have lower share prices), as seen with activity in Neimeth, which saw over 500 million shares traded. It suggests the rally was participatory, extending beyond just the heavyweight index members.
Expert Insight: Contextualizing the Momentum
Mr. Tajudeen Olayinka, Chief Executive Officer of Wyoming Capital and Partners, affirmed the normality of this trend. “The week-long surge was normal and expected,” he stated. “Year-end trading is typically characterised by bullish rallies, adding that there was nothing unusual driving the market to that level.” This expert perspective reinforces that the gains are part of a predictable market cycle rather than a reaction to a specific, unforeseen catalyst.
What This Means for Investors
While the year-end rally is encouraging, savvy investors should look beyond the daily fluctuations. The strong YTD return of 47.73% sets a high benchmark and may lead to profit-taking in the early new year. The key for sustainable growth in 2026 will hinge on fundamental factors such as corporate earnings reports, macroeconomic policies, and global commodity prices. The current momentum provides an opportunity to review portfolios, take profits on overvalued positions, and identify fundamentally sound companies for the coming year.
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PTB/KOO
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Edited by Kevin Okunzuwa
