August 5, 2025/CSL Research

July 2025 in retrospect

• The Nigerian equities market extended its positive momentum in July 2025, building on the strong gains recorded over the previous three months, during which the market advanced by a cumulative 13.11%.
• Market breadth remained firmly positive, closing at 8.91x, with 98 gainers and just 11 losers—reflecting broad-based investor optimism. Consequently, the NGX All-Share Index surged by 16.57% month-on-month (m/m) to close at 139,863.52 points, bringing the year-to-date (YTD) return to an impressive +35.89%.
• Additionally, market activities improved in the month, with the average daily volume inching up by 29.7% m/m to 962.61 million units while the average daily value increased by 21.1% m/m to ₦24.04 billion. This further indicates the healthy investor participation on the domestic bourse in the month.
• The impressive performance of the All-Share Index (ASI) during the month was primarily driven by the release of strong half-year financial results and favourable corporate action declarations by listed companies. These developments significantly bolstered investor confidence, reinforcing the growing positive sentiment surrounding Nigeria’s macroeconomic outlook. Contributing to this optimism were stable interest rates, a relatively calm foreign exchange market, and improved system liquidity. These factors collectively supported a decline in yields on fixed income instruments, thereby enhancing the attractiveness of the equities market as investors sought higher returns.

August 2025 market prospects

• The NGX All-Share Index is expected to sustain its recent positive momentum into August 2025, albeit with the possibility of intermittent profit-taking by investors during the period.
• Price appreciation in key bellwether stocks is likely to continue, supported by sustained liquidity inflows into the equities market. Furthermore, corporate announcements related to strategic expansions and investments—such as UAC Nigeria Plc.’s recent disclosure of its planned acquisition of CHI Limited (subject to regulatory approval)—are expected to reinforce positive investor sentiment towards select stocks on the domestic bourse.
• Investor optimism is also likely to be influenced by earnings releases from major listed banks, particularly with regard to prudential Single Obligor Limits (SOL), loan forbearance policies, and corporate actions. These factors will likely shape price movements within the banking sector throughout the month.
• However, some downside risks to this positive trend remain. These include the anticipated increase in government borrowing in the debt market in Q3 2025, which could drive fixed income yields higher and reduce appetite for equities. Additionally, weaker-than-expected earnings from banks—especially if accompanied by limited or no interim dividend declarations—may dampen investor sentiment and stall the ongoing rally in banking stocks.

August 2025 Top 10 Stock Picks

Kindly click on the below link to download the August 2025 monthly stock picks report.

​​​​​​​​​​​CSL Nigeria Monthly Stock Picks – August 2025.pdf​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​