NGX Consolidates Amid Distribution Phase Ahead Of Earnings Season, Policy Meeting

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The Nigerian equity market began the just ended week on a bullish note, driving a 0.37% gain in the All-Share Index and sustaining the momentum through Wednesday. However, sentiment turned negative on Thursday, triggering a 0.40% drop in the Index, which deepened on Friday with an additional 0.64% decline. Consequently, the year-to-date return settled at 16.58%.

NGXASI Weekly Chart

Similarly, market capitalisation of the bourse settled at N75.962tr, while the All-Share Index stood at 119,995.76 points. Year-to-date, the All- Share Index has gained 16.58%, while the NGX-30 index is up by 16.22%. The NGX Banking Index has risen by 19.36%, the Pension Index by 28.95%, the Insurance Index is up by 4.50%, the Consumer Goods Index increased by 51.02%. However, the Oil and Gas Index recorded a negative return of 9.86%. In terms of market breadth, 78 stocks advanced, while 27 declined.

Neimeth Pharm Weekly Chart

Leading the top gainers chart is: NEIMETH International Pharmaceuticals Plc, a Nigerian pharmaceutical company established in 1997 after a management buyout of Pfizer’s Nigerian operations. It manufactures and markets ethical and consumer health products, including the popular sickle cell remedy, Ciklavit, which rose from N3.70 to N5.94, gaining N2.24 or 60.54%. Ellah Lakes Plc advanced from N5.33 to N7.00, a gain of N1.67 or 31.33%, while International Breweries Plc moved from N11.00 to N13.90, up by N2.90 or 26.36% per share. CWG Plc increased from N9.20 to N11.50, a gain of N2.30 or 25.00%, and Champion Breweries Plc rose from N8.20 to N10.00, adding N1.80 or 21.95%.

Multiverse Weekly Chart

On the decliners chart is: Multiverse Mining and Exploration Plc,a diversified Nigerian mining and quarrying firm with strong local presence, multiple mineral operations, and a firm focus on governance, sustainability, and value creation, dropped from N9.65 to N8.75, losing N0.90 or 9.33%. Associated Bus Company Plc declined from N2.70 to N2.45, shedding N0.25 or 9.26%, while Oando Plc fell from N61.00 to N56.50, a decrease of N4.50 or 7.38%. BUA Foods Plc slipped from N480.00 to N449.00, losing N31.00 or 6.46%, and Daar Communications Plc dropped from N0.65 to N0.61, down by N0.04 or 6.15%.

Outlook: Cautious in the Short Term

While the medium to long-term trend remains bullish, the short-term technical outlook has turned cautious, with signals pointing toward a possible correction or consolidation phase. Key areas to watch: NGXASI is holding above 119,000 to maintain its bullish structure, a breakdown below 117,000 could trigger broader sell-offs, if sustained move above 121,500 with volume would confirm continuation of the bullish trend

Trending in the Economy: Nigeria has signed a $1bn partnership with Brazil to advance agriculture, energy, food security, and defence. Vice President Kashim Shettima said the deal will provide mechanised farming tools, training, and service centres across the country—supporting Nigeria’s shift to large-scale agriculture and its $1 trillion economy goal by 2030. It was signed in Abuja during the visit of Brazil’s Vice President, Geraldo Alckmin.

Zacch Adedeji, Chairman of the National Revenue Service (formerly FIRS), announced that the four tax reform bills will take effect on January 1, 2026. He said the six-month window allows for planning, public awareness, and fiscal alignment, stressing the importance of avoiding mid-year policy shifts. His aide added that the timeline gives taxpayers time to prepare.

Global Market and Oil: Global stocks climbed to record highs on Friday, driven by renewed optimism over U.S.-China trade talks. Gains in tech giants like Nvidia, Alphabet, and Amazon pushed the S&P 500 and Nasdaq to fresh peaks, with both indexes also posting weekly gains of around 5% for the year.

The Dow rose 1% to 43,819.27, the S&P 500 added 0.52% to 6,173.07, and the Nasdaq gained 0.52% to close at 20,273.46. In Europe, the STOXX 600 rose 1.1%, with a weekly gain of 1.32%, while the MSCI World Index hit a record 916.39, rising 3.3% for its best week since mid-May. London’s FTSE 100 added 0.72%. Asian markets hit multi-year highs but closed slightly lower.

Markets rallied on signs of easing U.S.-China tensions, including a rare earth export deal and a temporary ceasefire between Iran and Israel. Analysts also cited rising earnings forecasts and expectations of U.S. rate cuts, possibly tied to Trump appointing a dovish Fed chair. U.S. consumer spending unexpectedly fell 0.1% in May, while inflation remained modest.

Dollar Slips to Multi-Year Lows

The dollar hovered near its lowest level in over three years, with the index down 0.03% at 97.34. It weakened 0.08% to 0.799 Swiss francs and rose 0.21% to 144.68 yen. The euro gained 0.07% to $1.1707 after stronger-than-expected French inflation data.

U.S. 10-year Treasury yields rose to 4.277%, while German 10-year Bonds posted their largest weekly rise since March, despite slipping slightly to 2.587% on Friday.

Commodities Mixed

Oil prices edged higher—Brent settled at $67.77 and WTI at $65.52—but both were on track for their steepest weekly drop since March 2023, as Middle East supply fears faded. Gold slipped 1.68% to $3,271.80.

Sectorial Indexes Weekly Charts Below

NGX Banking Index Weekly Chart