Positive Momentum Lingers On Nigerian Bourse Amid Sector Rotation, As Investors ReactTo Impressive Earnings

EditorOctober 18, 2025

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It was a bullish week of mixed market performance on the Nigerian Exchange, reflecting a combination of sector rotation, profit taking and portfolio reshuffling ahead with more corporate earnings hitting the market next week. This is supported by other factors such as the positive economic data like the latest consumer price index showing a sixth successive slowdown in inflation to 18.02% in September, money flow index reading 100 points, indicating the presence of smart money in the market. This has supported the rally of highly priced stocks in the market.

NGXASI Daily Chart

The markup phase on NGX continued on the daily time frame as revealed by index’s action and market activities. Trading opened for the week on a positive note with the NGX All-Share Index (ASI) rising 0.50% to 147,717.21basis points, driven by gains in TRANSPOWER and STANBIC. Market capitalization gained ₦464.65 billion, closing at ₦93.76 trillion, while trading activities picked up, led by FIDELITYBK in volume and MTNN in value.

On Tuesday, the market steadied at 147,710.96bps, snapping an eleven-day winning streak as profit-taking affected stocks like FIDSON and BERGER. Market capitalization remained at ₦93.76 trillion, with turnover falling to 495.03 million units, again led by FIDELITYBK in volume and MTNN in value.

Wednesday saw a mild recovery, with the ASI edging up to 147,742.22 points, supported by TRANSCORP, STANBIC, and NESTLE. Market capitalization rose to ₦93.78 trillion, while trading volume dropped to 389.11 million units, with FIDELITYBK leading in volume and ZENITHBANK in value.

The market extended gains on Thursday, climbing to 148,355.04 points on the back of gains by DANGCEM, FIRSTHOLDCO, and PZ. Market capitalization hit ₦94.17 trillion, while turnover reached 432.43 million units, with ACCESSCORP dominating volume and GTCO leading in value.

Friday’s session capped a strong week as the NGX ASI closed at 148,977.64 points, boosted by NAHCO, BUAFOODS, and VITAFOAM. Market capitalization rose to ₦94.56 trillion, with 480.99 million units traded, led by UBA in volume and DANGCEM in value.

The Financial Services sector remained the most active, accounting for 1.66 billion shares worth ₦32.57 billion across 56,253 deals, representing 68.65% of total volume and 42.50% of total value. The ICT sector followed with 184.88 million shares valued at ₦8.66 billion, while the Services sector recorded 154.54 million shares worth ₦1.07 billion. Top-performing stocks by volume included Consolidated Hallmark Holdings, Fidelity Bank, and Access Holdings, which collectively accounted for 618.55 million shares valued at ₦9.22 billion, or 25.54% of total market volume.

NGXASI Weekly Chart

For the week, the NGX ASI gained 1.35%, closing at 148,977.64bps after breaking out the psychological line of 149,000 marks to test 149,038 level on a buying sentiment and low traded volume. Even then, market capitalization rose by 1.36% to ₦94.56 trillion. Despite the delisting of Smart Products Nigeria Plc and Migration of Juli Plc to the growth board of NGX within the week. Also, price adjustment of Regency Assurance Plc and Academy Press Plc for their corporate action of bonus shares and dividend. Most sector indices finished higher, though NGX CG, Banking, AFR Bank Value, AFR Div Yield, MERI Growth, MERI Value, and Growth recorded slight declines ranging from 0.13% to 2.08%.

Week-to-date, the NGX 30 rose by 1.43%. The Banking Index posted a Loss of 0.13%, the Pension Index increased by 0.20%, the Insurance Index increased by 2.56%, and the Consumer Goods Index increased by 1.93%. Oil and Gas Index increased by 0.04%.

On a year-to-date basis, the All-Share Index is up 44.74%, while the NGX 30 has gained 42.79%, The Banking Index surged 40.01%, the Pension Index jumped 52.56%, the Insurance Index rose 79.61%, and the Consumer Goods Index posted a robust 101.87% increase. However, the Oil and Gas Index declined by 1.87%. Market breadth is positive, with 52 stocks advanced and 41 declined.

Sovereign Trust Insurance Chart

Sovereign Trust Insurance Plc, a Nigerian non-life insurance company, led the chart, rising from ₦3.21 to ₦3.57, up 11.21%. Royal Exchange Plc followed with an 11.11% increase to ₦2.40, while Eunisell Interlinked Plc climbed 10% to ₦48.40. SFS Real Estate Investment Trust advanced 9.88% to ₦418.75, and Omatek Ventures Plc gained 9.49% to ₦1.50.

Tripple Gee & Company Plc

Tripple Gee and Company Plc, a Nigerian company specializing in the production of secure documents, financial instruments, and flexible packaging materials. declined the most, falling 18.84% to ₦4.91. Academy Press Plc lost 17.92% to close at ₦7.88. Regency Assurance Plc dipped 13.94% to ₦1.42, while Livingtrust Mortgage Bank Plc slid 13.46% to ₦4.50. Industrial & Medical Gases Nigeria Plc rounded out the list with a 9.87% drop to ₦32.40.

Technical View:

The NGX All-Share Index (ASI) ended the week at 148,977.64 points, maintaining an upward trend above the 148,000 psychological support level. Technical indicators suggest a bullish bias, supported by consecutive weekly gains of 1.35%. Short-term support levels are identified at 148,000 and 147,500 points, while immediate resistance is seen around 149,500–150,000 points. Trading volumes have been steady, with Financial Services and Consumer Goods leading market activity, reflecting sustained investor interest in blue-chip and high-liquidity stocks. Market breadth is positive, with 70 advancing stocks versus 22 declining, indicating continued upward momentum.

Outlook For The Week:

The market is likely to maintain a cautiously optimistic stance in the near term, driven by strong performances in key sectors such as Financial Services, Insurance, and Consumer Goods. Macro tailwinds, including the Federal Government’s ₦4 trillion power sector bond, easing inflation (18.02% in September), and improved supply conditions, are expected to support investor confidence. Potential sector rotation may favor high-growth insurance and banking stocks, while profit-taking could affect heavily traded or recently overbought equities. Investors should monitor global cues, particularly U.S. Treasury yields and oil price movements, as these may influence market sentiment. Overall, the technical picture suggests a continuation of the bullish trend, with opportunities for selective buying at support levels and profit-taking near resistance zones.

Trending in the Economy: The Federal Government has approved a ₦4 trillion bond to settle outstanding debts owed to power generation companies and gas suppliers. According to Special Adviser on Energy, Mrs. Olu Verheijen, the decision followed extensive discussions with GenCos. Business leaders Tony Elumelu and Kola Adesina hailed the move, noting it would rebuild investor trust and strengthen the power sector. As part of ongoing reforms, the Bureau of Public Enterprises will list selected power firms on the Nigerian Exchange.

In a related development, Nigeria’s headline inflation rate eased to 18.02% in September from 20.12% in August — its lowest in over three years. The drop was largely attributed to slower food inflation, which fell to 16.87% amid improved supply conditions. This decline reflects the impact of recent economic measures under President Bola Tinubu and a monetary policy adjustment by the Central Bank of Nigeria, pointing to a gradual easing of inflationary pressures.

Global Market and Oil: U.S. stocks climbed on Friday, supported by a rebound in Treasury yields and renewed optimism over trade talks between Donald Trump and Xi Jinping. After a choppy start, all three major U.S. indexes ended in the green and secured weekly gains. The Dow Jones Industrial Average opened at 45,952.24 and closed at 46,190.61, adding 238.37 points or 0.52%. The S&P 500 opened at 6,629.07 and ended at 6,664.01, up 34.94 points or 0.53%. The Nasdaq Composite gained 117.44 points or 0.52%, closing at 22,679.98 after opening at 22,562.54.

Investors’ confidence improved as concerns over systemic risks in regional banks eased. This followed news that Zions Bancorporation would take a $50 million loan loss in Q3 and Western Alliance Bancorporation filed a fraud lawsuit against an investment firm. The KBW Regional Banking Index recovered 1.7% after a sharp 5% drop on Thursday. Market sentiment was further lifted as Trump confirmed his upcoming meeting with Xi in South Korea, downplaying the feasibility of imposing a 100% tariff on Chinese goods.

On the earnings front, 58% of S&P 500 companies have reported third-quarter results, with 86% beating estimates. Analysts now project earnings growth of 9.3% year-on-year, up from 8.8% earlier in October.

In the bond market, the 10-year U.S. Treasury yield climbed to 4.005% from 3.976%, the 30-year yield rose to 4.6005% from 4.583%, and the 2-year yield increased to 3.459% from 3.426%. The U.S. Dollar Index firmed 0.16% to 98.42, with the euro at $1.1669 and the dollar at 150.48 yen.

European and Asian markets were less upbeat. The STOXX 600 fell 0.95%, FTSEurofirst 300 dropped 0.91%, and emerging market stocks lost 1.22%. In Asia, the MSCI Asia Pacific ex Japan Index slid 1.24%, and the Nikkei 225 declined 1.44%. Gold also pulled back from record highs as safe-haven demand cooled with easing financial sector jitters. Oil prices edged up slightly but ended the week lower amid persistent uncertainty over global supply. West Texas Intermediate crude settled at $57.54 per barrel, while Brent Crude closed at $61.29 per barrel.

Sectorial Indexes Weekly Chart

NGX Banking Index Chart