Profit-Taking Drags Nigeria’s NGX Lower As Investors Rebalance Portfolios, Sentiment Turns Cautious

Market Update For November 3, 2025

Akintunde Oyedokun

The Nigerian stock market started the new week on a bearish note, reversing Friday’s rebound as renewed sell pressure hit the equities space. Investors continued to lock in profits from earlier gains, particularly in large-cap stocks, amid cautious positioning ahead of upcoming macroeconomic data releases and fiscal policy expectations.

Monday’s trading session reflected a mixed tone at the open, with early bargain-hunting in a few banking and insurance counters giving way to stronger selling interest in industrial and consumer goods stocks as the day progressed. Market sentiment turned negative as institutional players and short-term traders booked profits in bellwether equities, following a week marked by oscillating performance and fragile buying momentum.

Analysts at Investdata Consulting noted that the market’s recent pullback aligns with expectations of sectoral rotation and short-term portfolio adjustments by investors reacting to the ongoing economic reforms and interest rate environment. The tight liquidity in the financial system and weak foreign investor participation continue to exert mild pressure on the market’s ability to sustain uptrend rallies, even as attractive dividend yields keep long-term investors on watch.

Sectoral performance mirrored the overall downtrend, with notable losses across the banking, consumer goods, and industrial sectors. The banking index declined on profit-taking in ACCESSCORP, UBA, and GTCO, while the consumer goods segment also suffered declines driven by selloffs in DANGSUGAR, UNILEVER, NNFM, and HONYFLOUR. The oil and gas sector remained muted despite mixed global oil price movements, as traders monitored developments from the latest OPEC+ output policy update.

Trading activity weakened sharply, reflecting a slowdown in market participation. Total traded volume fell 87.94% to 627.50 million units, valued at ₦25 billion, exchanged in 36,425 deals, showing reduced momentum compared to the previous session. UBA maintained dominance on both the volume and value charts, accounting for 21.81% of total volume and 22.17% of value traded, supported by sustained institutional interest. It was followed by ASOSAVINGS and ACCESSCORP, which also attracted notable buying activity.

Technical Analysis:

From a technical standpoint, the market remains in a short-term correction phase, as the NGX All-Share Index closed below the 20-day moving average, indicating sustained bearish sentiment. The Relative Strength Index (RSI) slipped toward the neutral zone, suggesting a slowdown in buying momentum and possible continuation of range-bound trading in the near term. The 154,000 psychological level remains a strong resistance, while 153,500 points serve as a key support level that could attract short-term buyers if sustained.

The candlestick pattern formed on Monday’s chart points to investor hesitation, with mixed buying and selling pressure dominating the session. A decisive break below the current support zone may trigger further downside, while a rebound above the moving averages could restore mild bullish sentiment in the coming days.

Market Outlook:

Looking ahead, the market is expected to trade mixed-to-bearish in the short term as investors continue to weigh profit-taking opportunities against the backdrop of upcoming macroeconomic data, fiscal adjustments, and global oil market trends. However, the medium-term outlook remains positive, supported by resilient corporate earnings, strong dividend yields, and growing interest in fundamentally sound stocks. Bargain-hunters may likely take advantage of price pullbacks, particularly in banking and industrial goods stocks with attractive valuations.

Oil Market Update:

In the commodities market, oil prices were little changed despite OPEC+’s latest decision to end its supply increases. Brent crude slipped 0.02% to $64.76 per barrel, while U.S. West Texas Intermediate (WTI) eased 0.03% to $60.96 per barrel. The muted performance came as traders balanced the alliance’s decision to pause output hikes with rising concerns about a global oil glut and weaker factory activity across major Asian economies. Brent and WTI both fell over 2% in October, marking a third consecutive month of decline as oversupply fears persisted.

Market Performance Summary:

At the close of Monday’s session, the NGX All-Share Index (ASI) fell by 0.25%, settling at 153,739.11 points, from 154,126.45 points recorded on Friday. The decline wiped off about ₦245.88 billion in market value, bringing the total capitalization down to ₦97.58 trillion. Consequently, the year-to-date (YTD) return moderated to 49.37%, reflecting the recent streak of profit-taking.

The day’s top gainers included UNIONDICON, which led the advancers’ list, while HONYFLOUR (-10.00%), NNFM (-9.98%), ARADEL (-9.21%), UNILEVER (-4.29%), and BERGER (-3.53%) topped the losers’ chart. ASOSAVINGS and DEAPCAP reached new 52-week highs at ₦1.07 and ₦1,110.00, respectively. Market sentiment remains cautious but positioned for selective accumulation as investors continue to monitor key price levels and sector-specific developments.