Nigerian Bourse Closes Week Higher As Renewed Investor Confidence Lifts Market Sentiment

Market Update For October 17, 2025

The Nigerian equities market wrapped up the week on a firm bullish note, extending gains in four of the five trading sessions. This sustained momentum reflected renewed investor confidence in the domestic market, supported by strong liquidity flows, selective bargain hunting, and improved risk appetite from both institutional and retail investors. Market activity was particularly buoyant in the banking, consumer goods, and industrial goods sectors, which accounted for a significant portion of the week’s transactions.

This positive sentiment aligns with the broader narrative of investors seeking value in fundamentally strong companies as the market heads into the last quarter of the year.

Portfolio managers continued to strategically reallocate funds in anticipation of Q4 earnings releases, year-end corporate actions, and potential macroeconomic tailwinds. In addition, the current environment of relative foreign exchange stability and gradual moderation in inflationary pressures has supported market confidence.

Trading activity was solid throughout the week. Total volume traded increased by 11.23% to 480.99 million units, valued at N16.78 billion across 22,854 deals. United Bank for Africa led in terms of volume with 59.18 million units, representing 12.30% of total turnover. Access Holdings followed with 10.48%, while Fidelity Bank accounted for 9.77%. On the value side, Dangote Cement stood out with N2.64 billion in transactions, making up 15.74% of total value, followed by UBA and Access Holdings. This dominance underscores the strength of large-cap stocks in shaping overall market performance.

Technical View

Technically, the market maintained a strong bullish pattern, with the NGX All-Share Index (ASI) closing above its 20-day moving average. This sustained close above key technical levels signals persistent buying pressure and a favorable market structure. Momentum indicators such as the Relative Strength Index (RSI) also showed healthy strength, pointing to increased accumulation by investors.

Immediate resistance remains at around 149,500 points, with the key psychological level of 150,000 points in sight. A decisive breakout above this threshold could accelerate further upside movement in the near term. Support is firmly established at 147,800 points. While the overall sentiment remains positive, the possibility of short-term profit-taking cannot be ruled out, especially in stocks that have rallied significantly in recent sessions.

Market Outlook

Looking ahead, the market is expected to sustain its cautiously bullish tone in the coming week. This outlook is supported by the combination of robust liquidity, attractive valuations, and sustained demand for quality stocks. The banking sector is likely to continue attracting interest due to its earnings strength and dividend potential, while the industrial goods sector may benefit from infrastructure-related demand and ongoing construction activities.

Macroeconomic stability remains an important driver of sentiment. Investors are watching inflation figures, interest rate trends, and foreign exchange stability closely. If macroeconomic conditions remain favorable, the equities market could experience stronger foreign portfolio inflows as global investors continue to seek emerging market opportunities with attractive valuations.

The domestic market is also benefiting from improving confidence in Nigeria’s economic reform agenda, particularly in fiscal consolidation, FX management, and pro-business policies. These factors could provide additional tailwinds for equities in the medium term.

Global Oil Market

Global oil prices declined on Friday, capping a week of losses driven by oversupply concerns. International Energy Agency projected a growing supply glut, which weighed on market sentiment. Brent crude fell by 0.15% to $60.97 per barrel, while U.S. WTI slipped 0.07% to $57.42 per barrel.

Sentiment in the energy market was further dampened by geopolitical developments, as U.S. President Donald Trump and Russian President Vladimir Putin agreed to meet in Hungary within two weeks to discuss the Ukraine conflict. This unexpected diplomatic shift added another layer of uncertainty to the oil market, raising concerns about supply dynamics and geopolitical risks.

For Nigeria, the dip in oil prices could weigh on external reserves and fiscal buffers if sustained over a longer period. As Africa’s largest oil producer, the country relies heavily on crude oil revenues, making price movements a key factor in investor sentiment and economic outlook. However, in the short term, local market dynamics, particularly liquidity flows, earnings outlook, and technical momentum, are expected to remain the primary drivers of equity market performance.

Market Performance and Top Movers

On Friday, the NGX ASI advanced by 0.42% to close at 148,977.64 points from 148,355.04 points in the previous session. Market capitalization rose by N395.18 billion to N94.56 trillion, while the year-to-date return stood at 44.74%. Market breadth closed positive with 37 gainers and 22 losers, reflecting broad-based buying interest across multiple sectors.

Among the top performers, NAHCO gained 4.42%. As a leading ground handling and aviation logistics company in Nigeria, NAHCO has maintained a solid earnings performance and expanded its operational capacity, making it attractive to institutional investors seeking defensive plays in the transportation and logistics space. BUAFOODS advanced by 3.22%. As one of the country’s largest consumer goods firms with a strong product portfolio in sugar, flour, pasta, and packaged foods, BUA Foods continues to benefit from its defensive business model and stable cash flows, drawing steady investor interest.

VITAFOAM also recorded gains of 2.96%. A leading foam and bedding manufacturer in West Africa, the company’s solid fundamentals, consistent dividend history, and stable earnings have made it a favorite among long-term investors. DANGSUGAR rose by 2.84%, supported by strong operational efficiency and increased local demand, which have strengthened its earnings outlook. NEM Insurance appreciated by 2.66% as investors continue to position in the insurance space, recognizing its steady underwriting performance and potential for growth in Nigeria’s under-penetrated insurance market.

On the losers’ end, LivingTrust Mortgage Bank witnessed mild profit-taking after previous gains. As a fast-growing mortgage institution focused on housing finance, the stock has experienced notable interest in recent months but saw some end-of-week sell pressure. UPDC, a major real estate investment and development company, also retreated slightly following earlier strong performance, reflecting traders locking in short-term profits.

The mix of gainers and losers reflects an increasingly active market, where investors are focusing on companies with solid fundamentals and long-term growth prospects while engaging in tactical profit-taking in select counters. This dynamic is consistent with a healthy bull market where liquidity, earnings expectations, and technical patterns drive trading behavior.

Final Thoughts

The Nigerian equities market has entered the final quarter of the year with strong momentum. The combination of rising liquidity, renewed investor confidence, and sector rotation into fundamentally sound companies suggests that the market may sustain its positive trajectory in the near term.

However, investors will continue to closely monitor macroeconomic indicators, oil price developments, and global financial market trends. If the domestic economy remains stable and Q4 earnings meet expectations, the NGX could see stronger participation from both local and foreign investors, potentially driving the All-Share Index toward new highs.

Friday’s performance, with gains in key blue-chip stocks and a positive market breadth, underscores the resilience of the Nigerian equities market amid a challenging global economic landscape. As institutional investors deepen their exposure and retail participation grows, the market appears well-positioned for further expansion, provided that policy stability and investor confidence are maintained.