Market Update For December 18, 2025
The Nigerian equities market closed higher on Thursday, sustaining its upward trajectory as investors continued to favour fundamentally strong stocks despite a noticeable slowdown in overall trading activity. The session reflected a market still underpinned by confidence in earnings quality and medium- to long-term growth prospects, even as participants adopted a more selective and disciplined approach to positioning.
Demand remained pronounced in several blue-chip and mid-cap stocks, notably NESTLE, GUINNESS, MECURE, FIRSTHOLDCO, UACN, VITAFOAM, UBA, ETI, OANDO, ACCESSCORP and IKEJAHOTEL, alongside a broad mix of other names. These stocks benefited from renewed accumulation driven by strong fundamentals, improving price momentum and expectations of resilient earnings performance. The continued push by some counters into new 52-week highs further signalled strong underlying demand and growing institutional interest, reinforcing confidence in the ongoing rally.
Market activity, however, painted a picture of cautious optimism. Total traded volume and value declined sharply, suggesting that investors are increasingly weighing entry points and locking in profits after recent gains. Trading remained heavily skewed towards a handful of liquid stocks, with FIRSTHOLDCO dominating activity and accounting for a significant share of both volume and value traded during the session. This concentration highlights investors’ preference for stocks that offer depth, liquidity and flexibility in an environment where market participants are balancing opportunity with risk. FCMB and LASACO also featured prominently on the volume chart, while GEREGU and ARADEL trailed FIRSTHOLDCO in terms of value traded, pointing to sustained interest in select industrial and energy-related counters.
Sectoral Performance and Market Sentiment
Sectoral performance was broadly positive, with consumer goods and financial services leading gains, supported by renewed buying in heavyweight stocks. Mild weakness in a few counters did little to dampen overall sentiment, as the balance of trades continued to tilt in favour of the bulls. Market breadth remained positive, reflecting broad-based participation and suggesting that the rally is not narrowly driven by a few names alone.
Technical Analysis
Technically, the market remains firmly in bullish territory. The index continues to trade well above key short-, medium- and long-term moving averages, confirming the strength of the prevailing trend. The sustained pattern of higher highs and higher lows points to continued upward momentum. That said, momentum indicators on some heavily traded stocks are beginning to show stretched conditions, raising the likelihood of short-term consolidation or mild pullbacks. Such corrections are viewed as healthy within the context of the broader uptrend and are expected to present fresh buying opportunities for investors with a medium-term focus.
Outlook
Looking ahead, market performance is expected to remain positive but increasingly selective. Investors are likely to continue rotating across sectors, favouring stocks with strong fundamentals, attractive valuations and clear earnings visibility. Bargain hunting is expected to emerge on any price weakness, while profit-taking may cap aggressive upside moves in the near term. Overall, the broader outlook remains constructive, supported by liquidity flows, improving confidence and sustained interest in quality stocks.
Oil Market Update
In the global commodities space, oil prices steadied as investors assessed the likelihood of further U.S. sanctions on Russia and the potential supply risks associated with a threatened blockade of tankers carrying Venezuelan crude. These supply-side concerns provided support for prices, keeping Brent crude around the $60 per barrel level, while U.S. West Texas Intermediate traded above $56 per barrel, despite lingering concerns about global demand conditions.
Market Summary
The All-Share Index (ASI) gained 0.35% to close at 150,363.05 points, adding 520.23 points on the day, while market capitalisation rose by N331.65bn to N95.86trn. Market breadth was positive with 35 gainers against 26 losers. On the gainers’ table, NESTLE led with a 10.00% surge to N1,958.00, followed by GUINNESS, which rose 9.98% to N289.70, and MECURE, up 9.13% to N55.00. On the losers’ side, STANBIC topped the decliners, shedding 9.87% to close at N70.00, as profit-taking weighed on select banking stocks.
