Market Review:
Trading on the Nigerian Exchange continued its bullish pattern on Tuesday as investors sustained their appetite for equities across key sectors.
The NGX All-Share Index gained 0.29 percent to close at 139,796.11 basis points, advancing from 139,394.75bps in the previous session, thus extending the positive momentum that has characterised the market in recent days. This upward move translated into a market capitalisation growth of ₦253.95 billion, which pushed the total value of listed equities to ₦88.45 trillion. Year-to-date returns strengthened further to 35.82 percent, reinforcing the resilience of the market despite intermittent bouts of profit-taking.
The day’s performance was underpinned by sustained bargain-hunting activities in large and mid-cap stocks. MECURE once again attracted significant demand as it rose 9.92 percent, maintaining its position among the market’s top performers. WAPCO followed with a solid 6.15 percent gain on renewed interest in industrial goods stocks, while PZ appreciated by 2.41 percent as investors sought opportunities in consumer goods counters. Banking majors including ACCESSCORP, FIDELITYBK, GTCO, UBA, and ZENITHBANK also closed in positive territory, reflecting renewed positioning in financial stocks.
The overall market sentiment was decidedly bullish as 35 equities appreciated in price against 18 that closed lower. REGALINS led the pack of gainers, while UNILEVER suffered the heaviest decline of the session. A notable highlight of the day was the breakout to new 52-week highs by MECURE and ETRANZACT, which closed at ₦21.60 and ₦12.40 respectively, suggesting sustained accumulation by market players and positive investor outlook on their future earnings prospects.
Trading activity, however, presented a mixed picture as total transaction volume declined by 30.46 percent to 659.17 million shares compared to the previous session, although market turnover remained robust at ₦12.51 billion, showing that value investors are still actively participating. The market recorded 25,334 deals, indicating broad participation across sectors. FCMB remained the most actively traded equity both in terms of volume and value, exchanging 202.49 million shares worth ₦2.10 billion. This represented 30.72 percent of total traded volume and 16.77 percent of the day’s traded value. UNIVINSURE and FIRSTHOLDCO also contributed significantly to market activity, confirming that investors are still diversifying into both low-priced penny stocks and fundamentally strong financial holdings.
From a technical standpoint, the NGXASI continues to trade above its short- and medium-term moving averages, reinforcing the prevailing bullish trend. The strong positive breadth, alongside the sustained participation of institutional and retail investors, suggests that sentiment remains firmly on the buy side. This is consistent with market behaviour in pre-earnings release periods when investors reposition their portfolios ahead of expected Q3 scorecards and interim dividend announcements.
Global and Commodities Market Influence:
On the commodities front, oil prices extended gains on Tuesday, supported by a cocktail of geopolitical risks and supply-side expectations. Brent crude climbed by $0.97 or 1.5 percent to settle at $66.99 per barrel after touching a session high of $67.27, while U.S. West Texas Intermediate crude advanced $0.92 to $63.18 per barrel. The market reaction followed reports that the Israeli military had carried out a strike on Hamas leadership in Doha, raising fears of an escalation in the conflict that could disrupt supply chains in the Middle East. This was coupled with expectations that China will maintain its crude oil stockpiling policy to support its economic recovery, as well as speculation about additional sanctions targeting Russian crude exports. Furthermore, OPEC+’s recently announced production increase came in lower than analysts had projected, lending additional support to the market. Rising crude prices could further enhance earnings expectations for Nigerian oil and gas companies, potentially spurring renewed interest in energy-linked equities such as SEPLAT and OANDO in the coming sessions.
Outlook:
Looking ahead, we expect market sentiment to remain broadly positive in the short term, although profit-taking in some recently rallied stocks cannot be ruled out as traders lock in gains. The current technical setup still favours a continuation of the uptrend as long as the index sustains its position above the immediate support level. Investors are likely to keep targeting fundamentally sound stocks in the banking, industrial goods, and consumer goods sectors in anticipation of favourable Q3 earnings releases. Rising crude oil prices and improving global risk sentiment also provide a supportive backdrop for Nigerian equities. Nevertheless, we advise market participants to trade cautiously, maintain a disciplined risk management strategy, and watch out for macroeconomic releases, as well as policy pronouncements, that could sway investor positioning in the near term.
