NGX Sustains Bullish Momentum As Blue-Chip Stocks Drive Market Higher Despite Weak Breadth
Market Update For October 20,2025
The Nigerian equities market opened the new trading week on a positive note, extending its recent bullish streak and reinforcing the resilience of investor sentiment in the face of lingering macroeconomic uncertainties. Despite a negative market breadth, the strong performance of heavyweight stocks gave the market a firm footing, reflecting continued investor appetite for fundamentally strong and high-cap stocks.
The mood in the market on Monday was buoyed by renewed buying interest in key sectors, particularly industrial goods, banking, and oil and gas. Investors sought opportunities in blue-chip names, positioning for short-term gains and medium-term portfolio rebalancing. This movement came amid expectations of improved corporate earnings, moderated inflation pressures, and a stronger naira outlook, which together are improving risk appetite for equities.
Market activity showed signs of moderation but remained robust, with total volume traded standing at 415.35 million units, representing a 13.65% decline compared to the previous session. The value of trades settled at ₦27.16 billion across 31,522 deals. Fidelity Bank Plc emerged as the most actively traded equity by volume with 49.46 million units exchanged, accounting for 11.91% of total turnover. It was followed by Access Holdings Plc and Chams Plc, both of which recorded notable activity from retail and institutional investors. On the value side, Geregu Power Plc dominated with ₦9.29 billion, representing 34.20% of total value traded, ahead of Aradel Holdings Plc and Dangote Cement Plc, underscoring sustained interest in energy and industrial plays.
This strong performance was underpinned by confidence in the resilience of large-cap companies and optimism around their potential to deliver solid earnings and dividend payouts. Institutional investors were observed taking strategic positions ahead of potential corporate actions, while retail investors joined the rally to capture short-term price appreciation.
Technical View
From a technical standpoint, the benchmark index continues to trade comfortably above its 20-day moving average, signaling sustained buying momentum. This position reflects strong investor conviction, particularly in the industrial and banking sectors. However, the underlying market breadth, which remained negative, points to cautious participation as profit-taking pressures emerged in some mid- and small-cap counters.
The 150,000-point psychological resistance remains a key level to watch in the near term. A strong breakout above this threshold could signal a continuation of the rally, potentially attracting fresh liquidity from local institutional investors and offshore funds seeking exposure to frontier market assets. Relative Strength Index (RSI) indicators point to a mildly overbought territory in some blue-chip names, suggesting a likelihood of price consolidation or selective pullbacks in the short term.
Outlook
The market is expected to trade in a mixed pattern over the next few sessions as bargain hunters continue to take positions in fundamentally strong counters, while some investors may choose to lock in recent gains. Macroeconomic factors—including interest rate movements, FX liquidity, and upcoming earnings reports—are likely to influence market direction. If positive momentum persists and institutional inflows strengthen, the All-Share Index could push beyond 150,000 points, paving the way for a fresh rally into the final quarter of the year.
Foreign portfolio interest also remains a potential catalyst, especially as Nigeria’s fixed-income yields stabilize and equity valuations remain attractive compared to peer markets. Domestic pension funds and asset managers are expected to maintain selective accumulation of stocks with strong fundamentals, especially those with consistent dividend histories and strong earnings visibility.
Market Performance
The Nigerian Exchange Group All-Share Index (ASI) advanced by 0.65% to close at 149,940.81 points, up from 148,977.64 points recorded in the previous session. Market capitalization appreciated by ₦611.34 billion to settle at ₦95.17 trillion, while the year-to-date return climbed to 45.68%. This performance highlights the resilience of the market despite profit-taking in some segments.
Gains were led by blue-chip stocks. BUA Cement Plc, a leading cement manufacturer with a dominant market position in Nigeria’s construction sector, closed at ₦187.00 from an open of ₦176.00, representing a 6.25% gain. UAC of Nigeria Plc, a diversified conglomerate with investments spanning food, real estate, and logistics, climbed to ₦15.30 from ₦14.55, up 5.19%. FBN Holdings Plc appreciated by 3.50% to close at ₦34.55 from ₦33.40, reflecting sustained investor confidence in the banking sector’s earnings outlook. Oando Plc advanced from ₦14.22 to ₦14.55, a 2.39% gain, while United Bank for Africa Plc moved up by 2.26% to close at ₦31.85 from ₦31.15.
On the losers’ side, Juli Plc topped the chart, declining from ₦3.05 to ₦2.75, down 9.84%. Royal Exchange Plc followed, shedding 8.33% as it fell from ₦0.60 to ₦0.55, while Thomas Wyatt Nigeria Plc lost 7.79%, sliding from ₦3.85 to ₦3.55. The negative breadth, with 28 advancers against 32 decliners, reflects a market rally driven largely by a few heavyweights rather than broad-based participation.
Despite the weak breadth, investor sentiment remains constructive, underpinned by expectations of improved macroeconomic conditions and stronger corporate earnings in the final quarter of the year. If this momentum continues, the market could see increased accumulation in blue-chip counters, reinforcing its positive trajectory heading into the end of 2025.
