Nigeria’s Exchange Breaks Down 145,000bps Strong Psychological Line On Profit Taking, Sector Rotation

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Last week was a mix of profit taking and positioning on the Nigerian Exchange, with the major indicators halting 11 consecutive weeks of bull-run and staying upbeat that followed the release of half-year earnings that beat market expectation as better-than expected numbers poured in amid positive macroeconomic data. The selling sentiment for during the week under review was obvious in high traded volume, reflecting the impact of selloffs and profit booking across some major sectors of the market, which also created further buying opportunities in value and defensive stocks, as well as sectors.

NGXASI Daily Chart

Trading for the week started on a positive note to short-live the previous session’s loss as the NGX All-Share index gained 0.09%, closing at 145,880.77 basis points, while adding ₦79.61bn to close market capitalisation at ₦92.29trn. Year-To-Date return on the NGX stood at 41.73%. Gains by STANBIC (+10%), ENAMELWA (+9.93%), and NEM (+9.09%) supported the uptrend, while BUAFOODS hit a market cap of ₦10.58trn. Market sentiment was slightly bullish with 38 advancers and 36 decliners, as 2.12bn shares worth ₦19.40bn exchanged hands in 40,435 deals.

The bull-run extended on Tuesday with a 0.12% gain to 146,055.89 points, driven by JBERGER (+9.99%), LAFARGE (+6.06%), and NEM (+5.56%). Market breadth improved to 47 gainers against 29 losers, though turnover moderated to 1.28bn units worth ₦24.25bn. Even as midweek trading sentiment weakened as the NGX ASI shed 0.13% to 145,865.48 points, pressured by declines in BERGER, NB, and ZENITHBANK. Despite the upbeat breadth of 50 gainers vs. 21 losers, value fell ₦120.93bn to ₦92.28trn. Trading activity picked up with 1.34bn units worth ₦20.22bn.

Losses deepened Thursday with the benchmark index slowing down by a further 0.39% to 145,300.01bps on selloffs in WEMABANK, NGXGROUP, and DANGSUGAR. Investors lost ₦357.33bn as market value dipped to ₦91.93trn, while breadth turned bearish (48 losers vs. 22 gainers). Activity surged with 2.46bn units worth ₦22.22bn. The week ended bearish as the ASI dropped 0.46% to 144,628.20 points, wiping off ₦425.05bn in value to close at ₦91.50trn. The downtrend was fueled by profit-taking in NEM, MTNN, and UBA. Breadth closed weak with 36 losers against 30 gainers, while turnover moderated to 1.37bn units worth ₦13.92bn.

The week ended bearish on Friday as the sustained profit-taking pulled the ASI down 0.56% to 145,754.91 points, erasing another N516.14bn from market value to close at N92.21tr. The pressure eased YTD return to 41.61%.

CUSTODIAN, HONYFLOUR, MTNN, BUACEMENT, and DANGSUGAR weighed on performance. But trading activities, nonetheless, improved as volume was up 11.74% to 2.22bn units worth N32.42bn, driven by the twin of LINKASSURE and DANGCEM.

NGXASI Weekly Chart (Opening Chart)

The NGX ASI lost 0.77% w/w, extending profit-taking pressures. The index currently trades below the 145,000 psychological level, testing support around 144,500. A sustained break below could trigger further downside towards 143,800. However, relative strength remains moderate with breadth showing pockets of bargain-hunting. Resistance stands at 146,500, with any rebound hinging on renewed interest in banking and industrial stocks.

In the week ended Friday, the All-Share Index lost 0.77%, while the NGX-30 shed 0.85%. The Banking Index posted a 0.23% loss, the Pension Index declined by 0.70%. However. the Insurance Index climbed by 8.21%, while the Consumer Goods Index fell by 0.94%, just as the oil and Gas Index decreased by 1.42%.

On a year-to-date basis, the All-Share Index is up 40.52%, while the NGX 30 has gained 38.57%, The Banking Index surged 47.81%, the Pension Index is up 51.65%, the Insurance Index, 88.48%, while the Consumer Goods Index posted a robust 86.36% increase. On the contrary, the Oil and Gas Index is down by 11.28%. Market breadth for the week stayed slightly positive, with 50 stocks advanced and 49 declined.

Mutual Benefits Chart

Leading the top gainers chart for the week was Mutual Benefits Assurance, one of Nigeria’s leading insurance and financial services groups, established in 1995. Its share price rose last week from N2.92 to N3.85 (+31.85%); Tripple Gee improved from N4.30 to N5.60 (+30.23%); Sunu Assurances, from N5.00 to N6.19 (+23.80%); Mecure Industries, from N15.85 to N19.10 (+20.50%); and Deap Capital, from N1.35 to N1.61 (+19.26%).

UPDC Chart

On the Decliners chart, the share price of UPDC, a distinguished real estate and property investment company in Nigeria fell from N7.90 to N6.50 (-17.72%); followed by LivingTrust Mortgage Bank from N5.00 to N4.20 (-16.00%); Berger Paints from N37.50 to N32.00 (-14.67%); VFD Group from N13.40 to N11.90 (-11.19%); and Unilever Nigeria from N79.70 to N71.50 (-10.29%).

Trending in the Economy: Nigeria has disbursed N5.12bn in pension arrears to 90,689 retirees under the Defined Benefit Scheme (DBS), according to the Pension Transitional Arrangement Directorate. Beneficiaries include retirees from the Customs Service, Immigration, Prisons, Police, Civil Service, and Parastatals. PTAD said the payment aligns with President Bola Tinubu’s Renewed Hope Agenda, which also covers pension increases, harmonisation, and health insurance. This comes after N8.6bn was paid to 148,000 retirees in June.

Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority reported a 16.42% drop in fuel consumption for June 2025, with evacuation down to 1.44bn litres, averaging 48m litres daily, while diesel supply rose slightly to 432.18m litres, and distribution fell 23%. Kerosene supply also dropped 13% to 7.79m litres, while gasoline plunged 48% to 37.66m litres. Lagos led truck-outs with 205.66m litres, as the agency pledged stable petroleum supply nationwide.

Nigeria’s macroeconomic indicators showed stability with modest growth prospects. Headline inflation eased for the fourth month to 21.88% in July, supported by FX stability and softer core prices, while PMI pointed to stronger private sector activity. Commodities traded bearish on hopes of a Russia-Ukraine deal, the naira held steady, fixed income was mixed on tight liquidity, and equities ended a 12-week winning streak on profit-taking.

Inflation fell to 21.88% from 22.22% in June, with core inflation down to 21.33%, but food inflation rose to 22.74%. Monthly inflation quickened to 1.99% on higher farm produce, energy, and healthcare costs. The CBN maintained rates at 27.50%, though persistent food-driven pressures may delay any policy easing despite the moderation trend.

Global Market and Oil: Global equities traded largely flat on Friday but hovered close to record levels as investors monitored the high-stakes meeting between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska over the Ukraine conflict. Market sentiment was cautious as Treasury yields rose, reflecting renewed inflation concerns that tempered expectations for Federal Reserve rate cuts.

On Wall Street, the Dow Jones Industrial Average opened at 39,060.42 and closed slightly higher at 39,091.28, gaining 0.08% and setting a fresh intra-day record high. The S&P 500 began the day at 5,546.76 but slipped to 5,530.77 by the close, down 0.29%. The Nasdaq Composite opened at 18,002.37 before ending the session at 17,931.49, a 0.40% decline, pressured by weakness in technology, financials, industrials, and utilities. Analysts noted that corporate earnings and profit margins remain the main drivers, with U.S. retail sales rising 0.5% in July providing some support despite lingering inflation risks.

In Europe, the pan-European STOXX 600 touched near a five-month high, opening at 516.20 and closing almost flat at 516.51, up just 0.06%. The MSCI All Country World Index consolidated recent gains, trading at 951.70, narrowly below its record 954.21 reached earlier in the week. Investors remained cautious as Ukrainian bonds stalled at distressed levels, reflecting uncertainty around the war’s outcome despite the Trump-Putin talks.

Currency markets saw the dollar weaken, falling 0.38% to 146.72 against the Japanese Yen, 0.15% to 0.806 versus the Swiss Franc, while the Euro strengthened 0.48% to $1.1702. The U.S. two-year Treasury yield inched up 1.1 basis points to 3.751%, while the 10-year yield rose 2.7 basis points to 4.32%.

Japan reported stronger-than-expected GDP growth of 1.0% annualised for Q2. Commodities showed mixed moves: Brent crude fell 1.5% to settle at $66.85 per barrel, U.S. crude slipped 1.8% to $62.80, while spot gold edged up 0.09% to $3,338.65 an ounce. Meanwhile, bitcoin retreated 0.78% to $117,033.52 after hitting a record high of $124,480.82 the previous day.

Sectorial Indexes Chart

NGX Banking Index Chart