Market Report:
The Nigeria’s equities market staged a strong recovery on Thursday, snapping a six-session losing streak amid renewed bargain hunting and improved sentiment which lifted the composite Nigerian Exchange’s All-Share Index by 0.60 percent to 138,980.01 basis points from 138,157.16 points recorded previously. This rebound translated to a gain of N520.63 billion in investors’ wealth as market capitalisation rose to N87.94 trillion, while the year-to-date return improved to 35.03 percent. The rebound was largely driven by price appreciation in key blue-chip and mid-cap stocks across the banking, consumer goods, and services sectors.
Trading activity was markedly stronger, with market volume surging by 276.79 percent to 1.82 billion units valued at N15.98 billion, exchanged in 24,612 deals. Market breadth reflected a strong bullish sentiment as 38 stocks closed higher, compared to 12 decliners.
HONYFLOUR and TRANSCORP were among the best performers, posting gains of 9.95 percent and 8.04 percent respectively, while NGXGROUP advanced by 3.81 percent. Consumer goods giants such as Nigerian Breweries and PZ Cussons gained 3.79 percent and 3.23 percent respectively, just as Tier-1 banks attracted renewed demand with UBA rising by 2.19 percent, GTCO by 1.66 percent, ACCESSCORP by 1.17 percent, and ZENITHBANK by 1.01 percent. ELLAHLAKES and VERITASKAP led the gainers’ chart, while AUSTINLAZ closed as the day’s biggest loser.
The day’s trading was dominated by SOVRENINS, which accounted for 77.88 percent of the total volume and 26.37 percent of the total value traded, reflecting the heightened interest in the counter. Nigerian Breweries and FIDELITYBK followed at a distance as other major contributors to market activity for the day.
Sectoral performance was broadly positive as buying momentum spilled across key indices. The banking sector recorded the strongest performance, buoyed by demand for Tier-1 lenders, ahead of the third-quarter earnings season, signalling that investors are positioning for improved numbers from the sector. The industrial goods space also closed positive on sustained interest in BUACEMENT and other mid-cap players, while consumer goods gained amid renewed demand for Nigerian Breweries, PZ Cussons and HONYFLOUR supported sector strength. Oil and gas stocks also posted moderate gains despite the weakened global crude oil market, while the insurance sector extended its rally on the back of significant trades in SOVRENINS and other insurers.
From a technical perspective, Thursday’s rebound lifted the benchmark index above a critical near-term support level at 138,500 basis points and established a bullish candlestick formation on the daily chart. This positive close above the 20-day simple moving average confirms renewed buying interest. Momentum oscillators such as the Money Flow Index and Relative Strength Index turned upward, suggesting rising accumulation and improved investor sentiment. The market, however, now approaches a near-term resistance band between 140,500 and 141,000 points, a zone that could trigger profit-taking in the coming sessions. A clear breakout above this level would open the way for a further advance toward 142,800 to 143,500 points, while a failure to hold above the 138,500 support could rekindle selling pressure with a possible retest of the 137,000 level.
The outlook for the next session remains broadly positive as bargain hunters and portfolio managers are expected to sustain buying momentum into the weekend. Market participation is likely to remain driven by banking stocks, consumer goods, and select oil and gas counters as investors position strategically ahead of upcoming corporate disclosures. Nevertheless, traders should watch for profit-taking around key resistance levels, particularly in stocks that have posted significant short-term gains.
On the commodities front, global crude oil prices continued their downward trend, declining by 1.3 percent as investors priced in the possibility of increased production quotas from the OPEC+ group when they meet this weekend. Brent crude settled at $66.71 per barrel, while West Texas Intermediate crude closed at $63.12 per barrel. The outcome of Sunday’s OPEC+ deliberations may shape sentiment around energy-related stocks in the coming week, particularly as the group weighs its production strategy against efforts to regain market share.
