As Profit-Taking Sweeps Banking Stocks, Aradel Extends Dominance
Market Update For October 27, 2025
After nine straight trading sessions of unbroken gains, the Nigerian equities market finally exhaled on Monday, closing the day slightly lower as investors turned to profit-taking ahead of the month’s end. The bearish mood marked a pause in what had been an impressive rally driven by strong corporate earnings, bargain-hunting, and renewed institutional inflows. Yet even as most sectors retreated, the energy giant Aradel Holdings remained a bright spot, extending its impressive upward streak and underscoring the continued investor appetite for fundamentally strong plays.
The day opened on a firm note, but the early optimism fizzled out midway through trading as the sell-side gained momentum. The pause came as no surprise to market watchers who had long warned that the market’s sharp ascent might trigger short-term profit-taking. While the week began with a mild retreat, analysts at Investdata Research noted that “this kind of breather is healthy for the market,” adding that it often precedes another leg higher when sentiment resets.
Globally, the atmosphere was no less charged. Oil markets steadied as Brent crude hovered at $66.08 per barrel, supported by optimism that trade negotiations between the U.S. and China could produce a tangible framework to avoid steep tariffs and revive industrial supply chains. Renewed U.S. sanctions on Russian energy firms added a layer of complexity to oil flows, but traders largely viewed the development as short-term noise. The global tone helped sustain investor confidence in Nigeria’s energy stocks, particularly Aradel, which continued to enjoy heavy demand from institutional buyers.
Back home, however, the market’s resilience was tested by broad selloffs across the banking and consumer goods sectors — both of which have enjoyed significant price appreciation in recent weeks. Heavyweights such as Access Holdings (-5.40%), UBA (-4.29%), Zenith Bank (-2.53%), and GTCO (-2.00%) came under selling pressure as investors booked profits. In the consumer space, PZ Cussons (-5.94%), Nigerian Breweries (-4.70%), and Cadbury Nigeria (-4.14%) also succumbed to similar pressures. The result was a slight downward tilt in the overall market direction, though analysts described the move as “a temporary adjustment, not a reversal.”
Still, amid the red sea of tickers, Aradel Holdings continued its reign as the day’s star performer. The integrated energy firm, which has carved a niche as one of Nigeria’s most fundamentally sound oil and gas plays, extended its upward climb as investors continued to accumulate the stock. Its strength reflects both strong earnings momentum and renewed optimism about Nigeria’s domestic energy reforms. Close behind was Presco Plc, buoyed by sustained interest in the agribusiness sector and positive outlook for palm oil demand.
Meanwhile, on the opposite end of the performance ladder, Deap Capital Management and Trust Plc (DEAPCAP) led the day’s losers, slumping under intensified sell pressure. The micro-cap investment firm, which had rallied sharply in earlier sessions, saw a sharp correction as traders cashed out. Other notable laggards included Access Holdings, hit by sector-wide profit-taking; UBA, which gave back part of last week’s impressive gains; and Nigerian Breweries, whose price weakness reflected investors’ concerns about cost pressures amid inflationary headwinds.
Market activity also cooled off from last week’s frenetic pace. Total traded volume fell by 56.29% to 503 million units, while total value traded declined to ₦24.94 billion across 39,972 deals. Access Holdings remained the most traded stock by both volume and value, accounting for 13.70% of total market volume. First Bank Holdings followed closely with 13.23%, while Universal Insurance contributed 3.81%. In value terms, Aradel Holdings topped the chart once more, representing 22.57% of total market value exchanged, followed by Presco Plc and First Bank Holdings, reflecting where institutional funds are currently concentrated.
From a technical standpoint, the market’s short-term uptrend remains intact despite Monday’s mild pullback. The NGX All-Share Index (ASI) continues to trade comfortably above its 20-day moving average, signaling underlying strength in market breadth. However, momentum indicators such as the Relative Strength Index (RSI) are now hovering around 70 points — a zone typically associated with overbought conditions — suggesting that a brief consolidation phase could be underway. Analysts expect the market to oscillate within the 154,000–156,000 range in the coming sessions as investors digest third-quarter earnings and monitor fiscal policy signals.
Looking ahead, Investdata analysts maintain a cautiously optimistic outlook, noting that the ongoing rotation from banking and consumer names into energy, industrial, and agribusiness counters reflects a strategic shift toward sectors with stronger medium-term fundamentals. The upcoming release of more Q3 corporate results is also expected to drive selective positioning, particularly among institutional players seeking to lock in dividend-yielding opportunities before the year-end rally resumes.
By the closing bell, the market’s scoreboard painted a picture of quiet consolidation rather than weakness. The NGX All-Share Index (ASI) eased by 0.10% to settle at 155,496.15 points, down from 155,650.20 points in the previous session. Market capitalization followed suit, shedding ₦97.79 billion to close at ₦98.70 trillion, trimming the year-to-date (YTD) return to 51.08%.
At the close, Aradel Holdings led the gainers’ chart, soaring on renewed buying interest that reaffirmed investor confidence in its strong fundamentals. Presco Plc also advanced, riding on positive sentiment in the agriculture sector. On the flip side, Deap Capital topped the losers’ table after plunging 9.68%, while PZ Cussons, Access Holdings, and UBA rounded out the day’s notable laggards.
In summary, the market may have paused its nine-day sprint, but the undertone remains bullish. Monday’s decline was more of a cooling-off than a correction — the kind of pullback that allows the next rally to build quietly beneath the surface. For investors with an eye on fundamentals, opportunities are emerging once again — especially in sectors where earnings momentum meets resilience.
