Nigerian Bourse Rebounds, Opens December Green On Buying Interests In Defensive Sectors Ahead Santa Claus Rally
The first trading week of December on the Nigerian Exchange (NGX) closed higher, thereby halting five consecutive weeks of bear transition due to sector rotation with market players taking advantage of pullbacks to buy in value stocks at a discount. Seasonality and patterns do not guarantee returns, there is need for effective combination of fundamental and technical analyses to trade profitably in this season and the new year.
NGXASI Daily Chart
Trading, however, opened the month on a cautious note as profit-taking in Consumer Goods and Insurance stocks weighed on the composite NGX All-Share index. INTBREW, DANGSUGAR, UACN, and NEM suffered declines, while UBA was the only notable large-cap gainer. A significant block trade in CORNERST supported turnover, just as oil prices edged higher following a brief supply disruption and the ongoing OPEC+ cuts. The NGXASI fell 0.22% to 143,210.33 points, with negative market breadth. SUNUASSUR and CHAMPION led the gainers, while CORNERST and UPDC were the top losers.
The market rebounded on Tuesday, December 2, with the index climbing by a robust 1.20% to 144,928.36 basis points, adding N1.29 trillion to cumulative market value. Positive sentiment prevailed as gainers outnumbered losers. DANGCEM, NCR, GUINNESS, and UBA drove the recovery, with NCR hitting a new 52-week high. ACCESSCORP recorded the highest trading volume, while SEPLAT led in value. Year-to-date returns improved to 40.81%.
On Wednesday, the NGX extended its gains, with the index rising 0.27% to 145,323.87 points, boosting market capitalization by N252.10 billion. Broad-based buying saw 30 stocks gain against 16 decliners. GUINNESS, NCR, NGXGROUP, and SKYAVN powered the rally, with GUINNESS and NCR hitting new 52-week highs. VERITASKAP led losses, while ETRANZACT topped trading volume and value, bringing year-to-date returns to 41.19%.
Thursday saw a modest advance, with the ASI up 0.10% to 145,476.15 points, adding N97.06 billion in value. Despite the rise, market breadth was negative. UACN led the market with a 10% gain, supported by ETI, WAPCO, NB, and TRANSCORP, while ELLAHLAKES fell the most. ETRANZACT again dominated trading, moving 1.58 billion units worth N6.37 billion, with NGXASI’s YTD returns reaching 41.34%.
Just as the last trading day of the week closed on another strong note with the ASI rising 1.08% to 147,040.07 points and adding nearly N1 trillion to investors’ wealth, while lifting YTD returns to 42.86%. Market breadth was positive with 36 gainers against 16 losers. UACN, TRANSCOHOT, IKEJAHOTEL, EUNISELL, and NB led gains, while UNIONDICON fell the most. ZENITHBANK saw the highest trading activity, moving 59.46 million units worth N3.64 billion.
Overall, trading activity strengthened this week as investors exchanged 6.62 billion shares valued at ₦113.22 billion across 109,590 deals, compared with 4.14 billion shares last week. ICT stocks dominated, accounting for 3.50 billion shares worth ₦17.76 billion, followed by Financial Services with 2.63 billion shares valued at ₦50.19 billion. E-Tranzact International, Cornerstone Insurance, and Access Holdings accounted for over 73% of total turnover, trading 4.87 billion shares valued at ₦27.42 billion.
The week closed positive as the NGXASI rose by 2.45% to 147,040.08, while market capitalization increased 2.67% to ₦93.72 trillion. Most sector indices finished higher, except Oil & Gas and Commodities, which slipped 0.57% and 0.30%, respectively.
NGXASI Weekly Chart
Week-to-date, the All-Share Index leaped by 2.45%, with the NGX-30 rising by 2.42%, the Banking Index posted gain of 3.20%, the Pension Index increased by 2.35%, the Insurance Index climbed 1.48% up, while the Consumer Goods Index jumped 1.56% northward. The Oil and Gas Index, however, lost 0.57%. On a year-to-date basis, the All-Share Index is up 42.86%, while the NGX 30 has gained 41.86% within the same period. The Banking Index surged 31.49%, Pension Index, 49.91%; Insurance Index, 53.02%; while the Consumer Goods Index posted a robust 100.64% surge. However, the Oil and Gas Index declined by 1.03%. Market breadth is positive, with 55 stocks advanced and 29 declined.
NCR Nigeria Plc
The share price of NCR Nigeria, a leading technology and payment solutions company, jumped from ₦54.65 to ₦72.70, representing a 33.03% notch; just as UACN rose from ₦78.90 to ₦96.80, gaining 22.69%. Guinness appreciated from ₦167.00 to ₦198.00, adding 18.56%. Dangote Cement advanced from ₦534.60 to ₦614.90, up 15.02%. Nigerian Breweries increased from ₦66.75 to ₦75.00, a 12% rise.
RT Briscoe
RT Briscoe is a diversified holding company established in 1957, operating across multiple sectors such as automotive sales and services (notably Toyota brand), industrial equipment and material handling, power products, and real estate/property management. It’s share price fell from ₦3.44 to ₦3.00, down 12.79%. That of Legend Internet dropped from ₦5.60 to ₦5.00, losing 10.71%, Union Dicon Salt declined from ₦7.00 to ₦6.30, shedding 10%. Associated Bus Company slipped from ₦3.44 to ₦3.10, down 9.88%. Cornerstone Insurance decreased from ₦6.00 to ₦5.50, a loss of 8.33%.
Technical Analysis:
The NGX remains in a short-term bullish trend with the ASI supported at 145,300bps, facing resistance near 148,500. Momentum indicators point to mild upward pressure, reinforced by strong liquidity and broad-based sector participation. Cement, Consumer Goods, and ICT stocks continue to drive market activity, while Oil & Gas and Commodities lag behind. Trading volumes suggest sustained investor confidence in mid-cap and large-cap equities.
Market Outlook:
In the new week, investors’ focus is likely to remain on high-liquidity sectors and top-performing stocks as the market approaches year-end. Key drivers will include oil price trends, corporate earnings releases, and the impact of the CBN’s new cash withdrawal limits effective January 2026. Short-term consolidation around current levels is expected, with upside potential if global oil prices and foreign capital inflows remain supportive.
Trending in the Economy: Nigeria’s economy expanded by 3.98% in the third quarter, slightly slower than the 4.23% recorded in Q2, as rising prices and tighter monetary conditions continued to pressure overall activity. Growth was driven mainly by services, agriculture, and a modest rebound in oil production, which climbed 5.84%. Despite this improvement, oil contributed only 3.44% to total GDP. The non-oil economy remained the main engine, growing 3.91% on the back of strong performance in services, industry, and agriculture. The World Bank commended ongoing stabilization efforts but stressed the need for deeper structural reforms. Output is forecast to rise to about 4.2% in 2025, with inflation expected to ease from 16.05%.
From January 1, 2026, the Central Bank of Nigeria will enforce new cash-withdrawal limits, capping individuals at ₦500,000 per week and corporate bodies at ₦5 million. Withdrawals above these thresholds will attract additional charges. Earlier exemptions for large cash movements and certain agencies have been scrapped, although government accounts remain exempt. The policy is designed to reduce heavy cash usage, cut handling costs, and curb money-laundering and related risks.
Global Market and Oil: Global equities climbed on Friday as fresh U.S. economic data strengthened expectations that the Federal Reserve will cut rates next week. The prospect of easier policy pushed the dollar lower and lifted gold, while Wall Street closed higher for a second straight week. Communication services, consumer discretionary, and tech stocks led the advance, while utilities, energy, and healthcare lagged. The Dow added 0.22%, the S&P 500 gained 0.19%, and the Nasdaq rose 0.31%.
European markets were mostly flat but still managed a small weekly gain of 0.41%. MSCI’s global index inched up 0.06%, marking its second consecutive session in the green.
The case for a Fed cut strengthened after September’s PCE Inflation Index—the central bank’s preferred gauge—rose 0.3%, matching forecasts. Consumer spending also grew slightly but slowed from the previous month, signaling softer economic momentum. More recent data showed an uptick in U.S. consumer sentiment in early December, even as concerns over inflation and jobs lingered.
Markets now see nearly a 90% chance of a 25-basis-point cut next week. “The Fed will cut; that’s basically priced in,” said Andrew Wells, CIO at SanJac Alpha, who noted that markets remain well supported heading toward year-end.
Currency trading was mixed. The euro held around $1.645, while the dollar firmed to 155.30 yen but slipped against other major counterparts. The dollar index edged down to 98.98, on track for a second week of losses as easing expectations weigh on the greenback.
Bonds were also in focus, with Japanese government bonds leading a global selloff. Yields on the 10-year JGB climbed to their highest level since 2007, and 30-year yields reached record highs after the Bank of Japan signaled a rate hike this month. A move to 0.75% would mark the highest Japanese policy rate since 1995. The yen strengthened and the Nikkei slipped as investors braced for tightening. With Japan poised to hike while the Fed cuts, traders unwound carry trades that rely on borrowing yen to invest in higher-yielding U.S. assets.
In the U.S., the 10-year Treasury yield rose to 4.137%, while the two-year yield climbed to 3.565%.
Commodities saw sharp action, with copper prices hitting a record $11,705 per ton after Citi upgraded its outlook on supply concerns and the Fed’s expected easing. Brent crude settled at $63.75 a barrel and WTI at $60.08. Gold slipped 0.17% to $4,200.40, while silver jumped 2.25% to $58.41 an ounce.
