NGX Sustains Positive Outing Amidst Profit Taking, Insurance Stocks Dominance

EditorAugust 9, 2025

28 6 minutes read

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Nigeria’s stock market continues to make new all-time highs, breaking out various psychological lines in an 11 weeks of bull ascendance, as many stocks repeatedly hit their new 52 week high on the back of changed market fundamentals. All these are happening as investors price in the impact of the imminent economic recovery as revealed by the better-than-expected corporate earnings reports particularly the half-year results, the seeming positive macroeconomic indices and improved liquidity due to the country’s relatively stable exchange rate. Also noteworthy, is the interest rate that has remaining unchanged year-to-date, even as declining inflation rate signal possibility of a cut in Monetary Policy Rate at the next meeting of the committee. This is also precedent on a further slowdown in the consumer price index of July and August.

The first pullback after the market had rallied for 26 back-to-back sessions signals profit taking, and that the NGX topping is underway, judging by the volume analysis on the daily and weekly chart, as well as money flow and other momentum indicators. This likely pullback or correction of NGX is for the market to gather more strength and surpass the latest height through consolidation and rebuild momentum that will attract new entry, even while sector rotations and portfolio repositioning continue.

NGXASI Daily Chart

The top chart pattern reversal formation at the end of Friday’s trading in the midst of an above average traded volume, is a sign that smart money is about to offload and in the process trap some players in their positions. However, the pullbacks or correction may touch the first strong support level of 142,000 points, before breaking down the 8-day EMA that reveals weakness.

Last week’s trading opened on a bullish note, with the NGX All-Share Index gaining 1.99% on Monday, closing at 144,071.78 basis points, while adding N1.78tr, as market capitalisation hit N91.15tr, lifting YTD returns to 39.98%. Gains by UACN, NAHCO, BUAFOODS, DANGCEM, and BUACEMENT led the rally, while 43 stocks advanced against 23 decliners. Trading volume fell to 811.1m units worth N19.47bn, with FCMB and GTCO topping the volume and value charts, respectively. The uptrend continued Tuesday when the index rose 0.50% to 144,796.37bps, just as capitalisation leaped by N458.43bn to N91.61tr, raising YTD return to 40.68%. BUACEMENT, ENAMELWA, HONYFLOUR, UNILEVER, NEM, and OANDO drove the gains, leading 43 other advancers, against 22 losers. Volume for that day rose 26.73% to 1.03bn units worth N22.84bn, led by AIICO and GTCO.

On Wednesday, the ASI advanced 0.70% to 145,813.86bps, while market value grew by a further N643.74bn to N92.25tr pushing YTD return to 41.67%. NEM, GUINNESS, CUSTODIAN, TRANSCOHOT, OANDO, and BUACEMENT fueled the rise. Volume surged 162.50% to 2.7bn units worth N32.63bn, with LINKASSURE and ZENITHBANK leading by volume and value. Thursday saw yet another 0.52% gain to 146,570.71bps, adding N478.83bn to make market capitalisation N92.73tr, bringing YTD return to 42.40%. GUINNESS, NEM, NGXGROUP, CAP, BUAFOODS, and BERGER supported the rally. Volume, however, declined by 26.51% to 1.98bn units worth N27.26bn, led by LINKASSURE and GTCO.

After such superlative run, the market closed the week bearish on Friday when profit-taking pulled the ASI down 0.56% to 145,754.91bps, wiping N516.14bn from market value as it closed at N92.21tr, as YTD return eased to 41.61%. CUSTODIAN, HONYFLOUR, MTNN, BUACEMENT, and DANGSUGAR weighed on the performance. Trading activities, however improved with volume was up 11.74% to 2.22bn units worth N32.42bn, driven by LINKASSURE and DANGCEM.

NGXASI Weekly Chart

Week-to-date, the All-Share Index advanced by 3.18%, while the NGX-30 rose by 2.74%, while the Banking Index posted a loss of 0.7%, ahead of the 0.14% drop in the Pension Index. The Insurance Index was up 41.0 %, while the Consumer Goods Index added 8.27%, trailed by the Oil and Gas Index with 0.17%. On a year-to-date basis, the All-Share Index is up 41.61%, while the NGX 30 has gained 39.76%. The Banking Index has, however, surged 48.15%, coming behind the Pension Index’s 52.72% jump, and the 74.18% by the Insurance Index. The Consumer Goods Index posted an even more robust 86.11% increase, while the Oil and Gas Index is down 10.00%. Market breadth remained positive, with 66 stocks advancing, compared to 41 decliners.

Mutual Benefits Assurance Weekly Chart

Leading the top gainers chart for the week was Mutual Benefits Assurance Plc, a top Nigerian insurance company established in 1995. MBA climbed from N1.82 to N2.92 (+60.44%), AIICO Insurance Plc from N2.19 to N3.50 (+59.82%), Royal Exchange Plc from N1.50 to N2.39 (+59.33%), Sovereign Trust Insurance Plc from N1.71 to N2.72 (+59.06%), and Cornerstone Insurance Plc from N4.15 to N6.41 (+54.46%).

Living Trust Mortgage Bank Weekly Chart

On the decliners chart was LivingTrust Mortgage Bank Plc, a focused mortgage specialist in Nigeria committed to expanding housing access and financial inclusion across income levels. The stock fell from N6.59 to N5.00 per share (-24.13%); Academy Press Plc dropped from N11.00 to N9.00 (-18.18%). Share of The Initiates Plc dropped from N13.75 to N12.00 (-12.73%), UPDC REIT from N9.35 to N8.25 (-11.76%), and Legend Internet Plc from N6.40 to N5.65 (-11.72%).

Market Outlook

From a technical perspective, the ASI held above key short-term moving averages, consolidating above the 145,000 psychological level after breaking past resistance at 144,000 early in the week. Indicators point to strong bullish momentum, as rising volume on up days signals institutional accumulation. However, the Friday pullback suggests possible short-term consolidation, with immediate support seen around 144,500 and resistance near 146,600. A breakout above this resistance could trigger a retest of the 148,000–150,000 zone, while a failure to hold support may invite further profit-taking.

Trending in the Economy: Nigeria’s oil production averaged 1.78m barrels per day in July, the highest since November, boosted by improved security in the Niger Delta that reduced theft and restored output, NUPRC chief Gbenga Komolafe said. With oil contributing over 80% of foreign exchange earnings and nearly two-thirds of government revenue, the recovery is key to economic stability. The government is targeting 3 million bpd, with the regulator committed to sustaining growth and enhancing transparency in the sector.

In June, Nigeria’s broad money supply (M3) declined by 1.27% to ₦117.4 trillion, extending its three-month slide as the CBN maintained tight monetary policy to curb inflation. Net foreign assets fell to ₦40.7 trillion, while net domestic assets climbed to ₦76.8 trillion, partially offsetting the drop. Declines in M2 and M1 reflect the impact of higher interest rates and liquidity tightening measures aimed at supporting the naira.

Global Market and Oil

Global equities ended higher on Friday as investors-maintained confidence that U.S. interest rates could still be reduced further this year, a sentiment that fuelled buying momentum across major markets. European stocks, in particular, posted their largest weekly gain in 12 weeks, supported by strong banking sector performances and optimism over corporate earnings. MSCI’s global index rose 0.52%, while on Wall Street, the Dow Jones Industrial Average advanced 0.47% to close at 44,175.61 from 43,968.02, the S&P 500 climbed 0.78% to 6,389.45 from 6,340.05, and the Nasdaq Composite surged 0.98% to 21,450.02 from 21,243.35. The rally came as markets digested fresh political and economic developments, including the nomination of Stephen Miran—aligned with President Donald Trump’s pro-rate cut stance—to the Federal Reserve Board, potentially locking in support for policy easing into early next year.

In Europe, the pan-European STOXX 600 index added 0.2%, ending the week over 2% higher as investors cheered better-than-expected corporate results and positioned for more monetary easing by the Fed. Sentiment was also lifted by hopes that new U.S. tariffs, which took effect on Thursday, would be subject to negotiations, easing fears of severe economic damage. Zurich’s SMI gained despite Switzerland facing a 39% U.S. tariff, with markets largely relieved that some levies, such as the European Union’s 15% duty, came in far below earlier threats of 50%. Analysts, however, warned that even at reduced levels, these tariffs represent the steepest in a century and could eventually weigh heavily on economic data.

Commodity markets reflected a mixed mood. December U.S. gold futures rose 1.1% to settle at $3,491.30 per ounce after briefly touching a record $3,534.10, spurred by reports suggesting that country-specific U.S. import tariffs could apply to the most commonly traded gold bars. Spot gold edged down 0.08% to $3,394.24. Oil prices were subdued as Brent crude closed 0.24% higher at $66.59 per barrel and U.S. West Texas Intermediate ended flat at $63.88, both recording weekly losses due to demand concerns and hopes for a Russia-Ukraine ceasefire.

Sectorial Indexes Chart

NGX Banking Index Chart