NGX Rebounds On Renewed Buying Interests, Investor Confidence, As Outlook Turns Mildly Bullish

Market Update For October 31, 2025

The Nigerian Exchange (NGX) wrapped up the week on a brighter note on Friday, ending a four-day losing streak as renewed buying interest in blue-chip and mid-cap stocks lifted overall market performance. The rebound came on the back of bargain-hunting in fundamentally sound equities, particularly within the banking, industrial, and energy sectors. This renewed optimism reflected a gradual return of investor confidence, following sessions of volatility and cautious sentiment earlier in the week.

Friday’s session underscored the resilience of Nigeria’s equity market, with investors taking advantage of depressed prices across key sectors. The uptick in buying momentum was supported by positive sentiment in the broader financial space, expectations of improved corporate earnings, and technical rebounds in several highly capitalized stocks. Institutional investors and high-net-worth individuals were active participants, further driving market breadth into positive territory.

Market Overview and Activity

Trading activity surged impressively as turnover recorded a significant boost. The total volume of equities traded jumped 553.57% to 5.20 billion units, valued at N45.16 billion across 30,598 deals. This represented one of the most active trading sessions of the month, largely influenced by cross-deal transactions and high-volume activities in insurance and banking equities.

Cornerstone Insurance Plc (CORNERST) was the day’s most actively traded stock, accounting for an overwhelming 89.99% of total market volume and 49.01% of total value, following heightened institutional demand and renewed retail interest in the company’s shares. This surge came after positive market reactions to Cornerstone’s strong financial performance, which highlighted growth in gross written premiums and improved claims efficiency. GTCO and Aradel Holdings followed distantly, contributing 1.28% and 0.90% respectively to total daily volume.

The strong rebound in volume and value traded reflected a re-entry of liquidity into the market, following a week dominated by risk-off sentiment and cautious positioning. This volume expansion, coupled with improving breadth, suggests that investor confidence is gradually returning ahead of key macroeconomic data releases and third-quarter corporate results.

Technical Analysis and Market Sentiment

From a technical perspective, the market’s price action indicated the early formation of a bullish reversal pattern after testing and holding above the 153,000 psychological support level. The All-Share Index (ASI) printed a bullish candlestick formation, confirming buying pressure at lower levels.

Momentum indicators also showed improving signals. The Relative Strength Index (RSI) climbed slightly to around 45 points, indicating that the market is gradually moving out of oversold territory. The Money Flow Index (MFI) recorded a positive reading, suggesting fresh inflows of institutional capital, particularly into large-cap banking and industrial stocks. The Moving Average Convergence Divergence (MACD) also hinted at potential upward momentum, while the 20-day moving average (MA20) near the 155,000 points mark remained a key resistance to watch.

Overall market sentiment remained mildly positive, as investors rotated funds into undervalued names with strong dividend potential and defensive fundamentals. Analysts believe the current market pattern represents a consolidation phase that could lead to a more sustainable uptrend if economic data remains supportive and foreign inflows strengthen.

Top Gainers and Corporate Profiles

Julius Berger Nigeria Plc (JBERGER) – +10.00%

Julius Berger led the gainers’ chart with a full-day limit gain of 10%, extending its recent recovery trend. As Nigeria’s foremost engineering and construction company, Julius Berger is involved in major infrastructure projects, including bridges, highways, and real estate development. The stock’s strong rebound was driven by expectations of increased government capital expenditure, following fiscal reforms aimed at boosting infrastructure spending. The company’s solid order book and reputation for timely project execution continue to enhance its market appeal.

Transnational Corporation Plc (TRANSCORP) – +6.38%

Transcorp sustained its bullish run, gaining 6.38% on renewed investor confidence in its diversified business model spanning power generation, hospitality, and oil & gas. The company’s growing energy portfolio and consistent revenue growth from its power subsidiary have strengthened its fundamentals. With Transcorp Hotels delivering steady performance and the group expanding its footprint in the energy sector, investors are increasingly viewing the stock as a long-term value play.

Access Holdings Plc (ACCESSCORP) – +6.30%

AccessCorp extended its positive momentum with a 6.30% gain, fueled by sustained demand from both institutional and retail investors. The financial powerhouse continues to benefit from its successful merger strategy, robust asset base, and digital innovation across African markets. The bank’s regional diversification and consistent earnings growth have kept it attractive to investors seeking exposure to Nigeria’s financial sector recovery.

PZ Cussons Nigeria Plc (PZ) – +3.75%

PZ Cussons, one of Nigeria’s leading FMCG firms, saw its shares advance 3.75% following improved investor sentiment driven by its latest financial disclosures showing better margins and efficiency in operations. The company’s refocused strategy on core brands such as Morning Fresh and Premier Soap, alongside cost-optimization initiatives, has continued to enhance profitability, despite inflationary pressures in the consumer goods sector.

BUA Cement Plc (BUACEMENT) – +2.86%

BUA Cement gained 2.86% on sustained accumulation by institutional investors. The company, one of the largest cement producers in Nigeria, remains a key beneficiary of the nation’s construction boom. Its recent capacity expansion projects and strategic energy efficiency initiatives have positioned it strongly against competitors. Investors remain optimistic about its long-term growth potential and stable dividend policy.

Top Loser: Eterna Plc (ETERNA)

Eterna Plc led the losers’ table, shedding value after a strong rally in previous sessions. The company, active in petroleum marketing, lubricants, and energy logistics, experienced profit-taking amid fluctuations in global oil prices and domestic fuel market uncertainties. Despite short-term price weakness, analysts maintain a neutral-to-positive long-term outlook for Eterna, given the firm’s strategic focus on downstream diversification and expansion into renewable energy solutions.

Market Performance Summary

By the close of trading, the All-Share Index (ASI) advanced by 0.29% to 154,126.45 points from 153,676.66 points, while total market capitalization rose by N285.48 billion to N97.83 trillion. The year-to-date (YTD) return improved to 49.74%, reflecting strong overall performance despite bouts of profit-taking.

The uptrend was largely fueled by price appreciation in Julius Berger (+10.00%), Transcorp (+6.38%), AccessCorp (+6.30%), PZ Cussons (+3.75%), BUA Cement (+2.86%), and Oando (+2.67%). On the other hand, Eterna Plc emerged as the top loser of the session. Meanwhile, ASO Savings maintained its bullish streak, trading above its 52-week high at N1.03, signaling sustained investor interest.

Global Oil and Commodities Update

In the commodities market, crude oil prices were relatively flat on Friday but remained on course for a third straight monthly decline. Market sentiment was pressured by a stronger U.S. dollar, weak economic data from China, and rising supply from key global producers. Brent crude futures rose 0.5% to $65.29 per barrel, while WTI crude gained 0.9% to $61.10 per barrel. The firming U.S. dollar near three-month highs made dollar-denominated commodities more expensive for non-U.S. buyers, contributing to the subdued demand outlook.

Market Outlook

Looking ahead, market outlook for the coming week appears cautiously bullish, as technical indicators suggest room for continued upside momentum, especially if institutional inflows persist. However, short-term profit-taking is likely as traders lock in gains from recent advances.

Investors are advised to maintain a strategic focus on value and dividend-paying stocks in the banking, industrial, and energy sectors, while closely monitoring macroeconomic developments such as inflation data, foreign exchange policies, and fiscal reforms. With year-end approaching, portfolio rebalancing and sector rotation are expected to influence market behavior in the near term.

In summary, the NGX’s performance on Friday reaffirmed the resilience of Nigeria’s capital market amid mixed economic headwinds. While short-term volatility remains possible, the underlying fundamentals of many listed companies and the improving sentiment suggest that a sustained rebound could be on the horizon.