Market Update – August 28, 2025
The bearish momentum on the Nigerian Exchange deepened Thursday, with the benchmark NGX All-Share Index (ASI) sliding for the second consecutive session, shedding 0.49% to close at 140,557.24 basis points, down from 141,248.76bps the previous day. The sustained sell pressure was largely driven by losses in key blue-chip stocks across the banking, consumer goods, and industrial sectors, as investors locked in profits from recent rallies.
Decliners included DANGSUGAR (-5.54%), HONYFLOUR (-4.44%), CADBURY (-4.00%), GTCO (-3.11%), LAFARGE (-2.99%), WEMABANK (-2.39%), UBA (-1.41%), ZENITHBANK (-1.29%), NESTLE (-1.06%), ACCESSCORP (-0.74%), FIDELITYBK (-0.47%), NNFM (-0.46%) and OANDO (-0.19%), among others.
Consequently, investors lost ₦437.54bn in market value, as capitalization fell to ₦88.93 trillion, while the year-to-date (YTD) return moderated to 36.56%.
Market Breadth and Sentiment
Market breadth closed weak, reflecting the dominance of bears in the day’s trading session: 38 losers vs. 17 gainers, confirming a negative market sentiment.
SCOA led the gainers’ table, hitting a fresh 52-week high at ₦6.05, while INTENEGINS topped the losers’ chart.
AUSTINLAZ also advanced to a new 52-week high at ₦2.90, pointing to selective accumulation in low-cap stocks despite the broader market selloff.
Market Activity
Trading activity picked up compared to the previous session, as both volume and value improved:
Volume traded was up 29.60% to 885.02m shares.
Value traded rose to ₦28.30bn in 26,163 deals.
Most Active Stocks: CHAMPION was the most traded by volume with 201.05m units, accounting for 22.72% of total volume. ACCESSCORP and GTCO followed with 11.55% and 10.90% respectively.
On the value chart, GTCO topped at ₦8.89bn (representing 31.40% of total value), followed by ARADEL and CHAMPION.
The activity pattern reflects the continued dominance of banking and energy stocks in institutional and retail portfolios.
Technical View
The ASI closed lower for the second straight session, forming a bearish candlestick that confirms weak momentum and profit-taking across major counters.
The index is trading slightly above the 50-day SMA and EMA, but the bearish pressure suggests a test of near-term support.
Relative Strength Index (RSI): has moderated from overbought levels, currently around 58.4, signaling cooling momentum.
Money Flow Index (MFI): trended lower, indicating that funds are gradually leaving the market.
MACD is showing signs of convergence, hinting at possible sideways movement if fresh demand does not return.
Key Levels:
Support: 140,000bps – a breakdown could trigger further downside toward 139,000bps.
Resistance: 141,500bps – only a breakout above this will confirm renewed upside momentum.
The chart setup suggests that the market is in a consolidation phase, with the risk of further correction if selloffs persist.
Global Oil Market
Crude oil prices retreated on Thursday after the prior session’s gains, pressured by concerns over weakening U.S. gasoline demand as the summer driving season winds down.
Brent crude was down 11 cents (-0.2%) at $67.94 per barrel.
WTI crude slipped 7 cents to $64.08 per barrel.
The decline followed expectations of reduced fuel demand ahead of the Labour Day holiday weekend in the U.S., despite official data showing a larger-than-expected drawdown of 2.4 million barrels in U.S. crude inventories. Meanwhile, the restart of Russian flows via the Druzhba pipeline to Hungary and Slovakia also eased immediate supply concerns.
Outlook
The market continues to grapple with profit-taking pressure, particularly in large-cap and blue-chip stocks, amid weak sentiment and reduced buying interest. The improving volume suggests active rotation among counters, but the dominance of sellers points to near-term caution.
Looking ahead:
Interim dividend season and corporate earnings remain key catalysts.
Oil price volatility and global risk sentiment will continue to influence investor appetite in emerging markets like Nigeria.
Pullbacks toward support zones are likely to attract bargain hunters, especially in fundamentally strong dividend-paying stocks.
At Thursday’s close, the NGXASI lost 0.49%, while investors shed ₦437.54bn, trimming the market’s positive YTD return to 36.56%.
