Insurance, Industrials power August NGX surge as market value hits ₦92.2trn, UACN jumps 115.9%
By Seun Ibiyemi
Insurance and industrial stocks drove a strong August rally on the Nigerian Exchange (NGX), extending gains and leaving the sector leaders as the month’s standout performers.
The benchmark NGX All-Share Index (ASI) rose to 145,754.91 points in the week ending 8 August, a weekly increase of 3.18 per cent. Market capitalisation climbed to ₦92.2 trillion, lifting investor optimism and edging the market closer to the ₦100 trillion threshold.
The insurance sector outpaced all others through the month, supported by brisk demand for low-priced, high-volume counters. Mutual Benefits Assurance advanced 60.44 per cent to top the performance table, closely followed by AIICO Insurance at 59.82 per cent, while Royal Exchange gained 59.33 per cent. The sector-wide upturn pushed the NGX Insurance Index up by more than 41 per cent within a single week, signalling renewed speculative interest alongside fresh liquidity inflows.
Industrial counters also logged sizeable advances. UACN rallied 115.9 per cent in one week to rank among the Exchange’s most striking movers. Other notable gainers included Academy Press, up 78.3 per cent; ABC Transport, up 65.8 per cent; and Eunisell, up 62.2 per cent. Consumer names participated as well, with the NGX Consumer Goods Index up 8.27 per cent, while the NGX Industrial Goods Index added more than 10 per cent week on week.
Trading Activity and Market Breadth
Turnover strengthened markedly during the period, as both volume and value rose by more than 30 per cent compared with the preceding week, according to NGX data, indicating broader investor participation. Market breadth reflected the positive tone: 66 stocks appreciated, 41 declined, and 47 closed unchanged.
Comercio Partners attributed the August upswing to three reinforcing factors. Liquidity inflows increased market activity and pointed to the entry of new funds into equities. Rotation into growth segments gathered pace, with investors favouring insurance and mid-cap stocks offering strong near-term return potential. Improved sentiment, underpinned by sustained confidence in the Nigerian economy and the corporate earnings outlook, supported demand across key sectors.
Caution as Optimism Builds
Analysts have cautioned that the speed of recent gains could prompt profit-taking in the coming month. With valuations stretched in select areas, particularly insurance, a pullback cannot be ruled out. Market watchers also observed that durable progress will hinge on consistent macroeconomic stability, an effective monetary stance, and ongoing structural reforms.
Speaking to Nigerian NewsDirect, stockbroker Aruna Kebira said renewed interest in insurers has followed the implementation of the Insurance Industry Reform Act, which strengthens compulsory coverage across key parts of the economy.
He noted that the Act requires developers to insure construction projects and allows transporters across the West African coast to operate under a unified framework via the ECOWAS Brown Card scheme. According to him, these provisions are opening new revenue streams for insurance companies and have positioned the industry among the unexpected winners of 2025.
Kebira added that, although many sectors have faced pressure from the recent migration of funds to the money market, insurance counters have been resilient.
“Several companies that had been trading below ₦2 per share are beginning to attract renewed attention from investors. Some insurers like NEM Insurance and Custodian & Allied remain strong players, with their stocks trading above ₦20, while mid-tier insurers such as Sovereign Trust, Royal Exchange, and Mutual Benefits are now seeing increased appreciation due to the compulsory insurance reforms,” he said.
He further observed that the new law, combined with stable oil prices, a more predictable exchange rate, and encouraging returns from manufacturers, has created a favourable backdrop for insurers to expand their business portfolios and improve profitability. Despite broader capital market softness in recent weeks, experts believe the insurance space could serve as a safe haven, with compulsory coverage policies acting as a catalyst for long-term growth.
Conclusion
August has so far delivered a vibrant run on the NGX, powered by outsized gains in insurance and industrial equities. While the upbeat tone has lifted market value towards historic highs, stakeholders are advising caution, given signs that the market may be entering overbought territory.