Nigerian Bourse Extends Pullbacks Amidst Buying Interest In Financial Service Stocks, Industrial Goods

EditorAugust 24, 2025

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Nigeria’s stock market closed negative for the second successive week on Friday, after breaking down the strong support level of 140,000 line amid selloffs and profit booking before recording a seeming rebound just before the week closed. The composite All-Share Index closed above the 141,000 psychological line on the back of renewed positioning in some major sectors of the market.

All these happened as market players continued their revaluation, sector rotation and portfolio rebalancing. Investors looked the way of insurance stocks after pulling back on profit taking, while awaiting the earnings inflow from interim dividend paying banks, which triggered positioning in these banks before their scorecards hit the market any moment from this new week till end of the quarter. Even then, the pullbacks created buy-opportunities in other sectors and stocks. This supported the reversal on Friday.

Below is the daily chart and market performance on daily review.

NGXASI Daily Chart

The bourse opened the week on a positive note, with the NGX ASI closing 0.07% up at 144,722.47 basis points on the first day, adding N59.64bn to close market capitalisiation at N91.56trn as gains in CUSTODIAN, DANGSUGAR, UNILEVER, and CADBURY lifted sentiment. However, the momentum was short-lived, as profit-taking dragged the index lower through midweek. By Thursday, the ASI had suffered a 3.03% haemorhage in four sessions, closing at 140,332.44 points. This followed losses suffered by rivals- DANGCEM and BUACEMENT, just like GUINNESS, MTNN, and CONOIL, driving market capitalisation down to N88.78trn.

The market bounced back on Friday, gaining 0.48%, closing at 141,004.14bps, supported by renewed interests in BETAGLAS, CAP, MECURE, ZENITHBANK, and NB. Still, the index closed the week over 2% lower, while year-to-date return moderated to 37.00%. Market breadth was mostly negative during the week, except for Friday when gainers numbered 49, strongly outpacing 11 laggards.

Several stocks, including BETAGLAS, NCR, MECURE, ENAMELWA, and AUSTINLAZ, touched new 52-week highs. Trading activity was volatile, with turnover falling midweek but rebounding sharply on Friday. Total weekly activity peaked at 1.30bn units worth N47.84bn, driven largely by ZENITHBANK, which also led in value terms at N21.23bn.

NGXASI Weekly Chart (Opening)

Week-to-date, the All-Share Index declined by 2.51%, with the NGX 30 losing 2.69%. The Banking Index posted a loss of 3.48%, the Pension Index declined by 2.14%, while the Insurance Index climbed 4.17% up. The Consumer Goods Index increased by 0.83%. Oil and Gas Index shed 0.84%.

As stated earlier, on a year-to-date basis, the All-Share Index is up 37.00%, while the NGX 30 has gained 34.84%, The Banking Index surged 42.67%, the Pension Index jumped 48.41%, the Insurance Index rose 80.62%, and the Consumer Goods Index posted a robust 85.89% increase. However, the Oil and Gas Index declined by 12.03%. Market breadth is negative, with 43 stocks advancing as 54 others declined.

Austin Laz Weekly Chart

Leading the top gainers table for the week was Austin Laz & Company Plc, a Nigerian corporate engaged in the manufacturing and sale of industrial and consumer goods, with a focus on products such as cooling systems, household appliances, and other electrical/electronic equipment. Its share price rose from ₦2.40 to ₦2.90, gaining 20.83%. NCR Nigeria Plc advanced from ₦8.70 to ₦10.50, up 20.69%, while Nigerian Enamelware Plc rose from ₦32.65 to ₦39.00, a 19.45% rise. Guinea Insurance Plc climbed from ₦1.49 to ₦1.77, up 18.79%, and Mutual Benefits Assurance Plc gained 14.29%, rising from ₦3.85 to ₦4.40.

Thomas Wyatt Weekly Chart

On the decliners chart Thomas Wyatt Plc, one of Nigeria’s oldest paper conversion and printing companies took the lead, dropping from ₦3.70 to ₦3.00, down 18.92%. NEM Insurance Plc fell from ₦32.50 to ₦26.60, shedding 18.15%, while Stanbic IBTC declined 15.39% from ₦111.10 to ₦94.00. Lasaco Assurance Plc lost 14.57%, falling from ₦4.05 to ₦3.46, and RT Briscoe Plc decreased from ₦3.95 to ₦3.40, down 13.92%.

Technical Analysis Outlook

The NGX ASI closed the week at 141,004.14 points, holding above the 140,000 psychological support zone, but momentum indicators suggest caution. The index slipped below its 20-day moving average (142,850 points), signalling short-term weakness, while still trading above the 200-day MA (128,500 points), maintaining a long-term bullish structure.

Relative Strength Index (RSI) fell to 44, indicating the market is leaning towards oversold territory but not yet at a strong reversal point.

MACD shows bearish momentum, with the signal line above the MACD line, though Friday’s rebound suggests a potential for short-term recovery if buying pressure sustains.

Volume analysis shows declining participation at the midweek but strong accumulation on Friday, hinting that bargain hunters may be re-entering select counters, especially in the banking and industrial goods sectors. Key resistance is at 144,500–145,000 points, while immediate support sits at 140,000 points. A break below 140,000 may expose the index to deeper losses towards 138,000, while a rebound above 142,000 could restore bullish sentiment.

Trending in the Economy: Nigeria’s inflation eased to 21.88% in July from 22.22% in June, marking a fourth monthly decline since last year’s rebasing that spiked it above 34%. Food inflation inched up to 22.74% from 21.97%, sustaining pressure on households. The Central Bank held interest rates at 27.5% for the third straight time, with Governor Olayemi Cardoso stressing the priority of inflation control. Analysts expect that stable prices could aid economic recovery.

Meanwhile, Nigeria’s Debt Management Office will auction ₦200 billion in FGN bonds on August 25, 2025, with settlement on August 27. The offer includes ₦100 billion FGN JUL 2030 (5-year reopening) and ₦100 billion 17.95% FGN JUN 2032 (7-year reopening), priced at ₦1,000 per unit and ₦5,000 minimum subscription. In July, the DMO raised ₦185.9 billion against over ₦300 billion in demand, with marginal yields dropping below coupon rates, reflecting easing inflation and a stable policy outlook.

Global Market and Oil: U.S. stocks rallied strongly on Friday after Federal Reserve Chair Jerome Powell hinted that the central bank could deliver a rate cut at its September policy meeting. His remarks, delivered at the Jackson Hole symposium, underscored the growing risks to the labor market, though he cautioned that inflationary pressures remain a concern. The signal was enough to lift equities broadly, push bond yields lower, and weaken the dollar.

On Wall Street, major indexes posted solid gains. The S&P 500 (SPX) climbed 1.5%, opening at 5,410.67 and closing higher at 5,493.12. The Nasdaq Composite (IXIC) advanced 1.7%, rising from an opening level of 17,860.12 to settle at 18,155.34. The Dow Jones Industrial Average (DJI) outperformed, surging 2.2% to close at a record 41,272.81 after starting the session at 40,393.55.

U.S. government bonds also gained. The policy-sensitive two-year Treasury yield fell nearly 10 basis points to 3.69%, while the benchmark 10-year yield eased 6 basis points to 4.27%. The foreign exchange market responded as well: the dollar index slid 0.89% to 97.73 after trading near 98.70 earlier in the day. The euro strengthened 0.97% to $1.1717, while the dollar dropped 1.1% against the Japanese yen to 146.74.

In Europe, equities followed Wall Street higher but at a slower pace. The region-wide STOXX 600 added 0.4%, climbing from 519.11 at the open to close at 521.16. German bonds also rallied, with the 10-year yield down 3 basis points to 2.72%.

Asian markets were lifted by strength in Chinese technology shares. The CSI 300 Index rose 2.1%, opening at 3,517.44 and closing at 3,592.28, after AI-related optimism boosted sentiment. Hong Kong’s Hang Seng Tech Index (HSTECH) gained 2.7%, advancing from 4,143.21 to 4,253.62.

Commodities also benefited from the softer dollar. Brent crude futures edged up 18 cents to close at $67.85 after opening at $67.67, while U.S. WTI crude added to $63.78 from $63.60. Gold extended its gains, climbing nearly 1% to finish at $3,370 per ounce, up from an opening level of $3,335 per ounce.

Sectorial Indexes Weekly Chart

NGX Banking Index Chart