Market Update- September 25,2025
After four consecutive sessions of losses, the Nigerian equities market recorded a cautious recovery on Thursday, buoyed by renewed investor interest in key large-cap stocks. The market’s rebound reflected a combination of profit-taking from earlier dips and fresh buying in fundamentally strong equities, as traders positioned themselves ahead of potential market-moving domestic and global developments. Investor sentiment was largely guided by corporate performance expectations, sector-specific optimism, and macroeconomic signals, which collectively contributed to a constructive, though measured, market tone.
The session’s gains were particularly pronounced in the banking and consumer goods sectors, with investors gravitating toward blue-chip equities perceived as defensive and resilient. Banking stocks continued to attract capital amid expectations of steady financial results and sustained liquidity in the sector, while consumer goods companies benefitted from relatively stable domestic demand. Energy and oil-related stocks also experienced significant activity, influenced by swings in global crude markets and renewed investor interest in high-volume oil equities. Smaller and mid-cap stocks, however, displayed a more muted performance, reflecting selective market participation and a preference for liquidity over speculative plays in the current market environment.
From a technical perspective, the NGX All-Share Index showed early signs of a short-term bullish reversal. The market tested resistance near the 141,500-point level while maintaining immediate support around 140,500 points. Momentum indicators suggest that stocks such as MECURE and OANDO, which experienced substantial gains, could continue their upward trajectory if high trading volumes persist. Historical price action indicates that elevated activity in high-capitalization equities often acts as a catalyst for broader market participation, implying that continued interest in these stocks could sustain the recovery in the near term. Market breadth, though positive, also reflects a cautious stance among investors, with measured buying outweighing aggressive positioning.
Sector dynamics painted a nuanced picture of the market’s underlying strength. In the banking sector, equities such as GTCO, ACCESSCORP, and STANBIC recorded moderate gains, driven by sustained investor confidence and liquidity. The consumer goods sector also benefitted from selective accumulation, with companies like DANGSUGAR and CADBURY leading rallies due to robust trading activity and expectations of steady revenue performance. Energy stocks, particularly OANDO and MECURE, experienced pronounced gains, reflecting optimism around global oil supply dynamics and pricing trends. The insurance and miscellaneous sectors saw mixed outcomes, as investor focus remained predominantly on high-capitalization and liquid equities, indicating that capital allocation was concentrated in securities perceived as safer or offering higher short-term upside potential.
Global oil markets influenced domestic equity sentiment as well. Oil prices edged lower on Thursday following a strong rally in the previous session. Brent futures declined by 0.6% to $68.88 per barrel, while U.S. West Texas Intermediate fell 0.7% to $64.51 per barrel. The retreat came amid profit-taking, softer U.S. equity markets, and expectations of slower winter demand. Earlier gains had been driven by a surprise drop in U.S. crude inventories and geopolitical concerns surrounding Ukraine’s attacks on Russian energy infrastructure. Analysts noted that recent risk-off sentiment in global markets, coupled with Federal Reserve Chair Jerome Powell’s comments on stretched equity valuations, exerted additional pressure on oil prices. Expectations of increased supply from Iraq and Kurdish fields further tempered bullish momentum. Technical support for Brent was observed around $68.50 per barrel, with resistance near $69.50, indicating that prices may remain range-bound in the near term unless supply disruptions or unexpected demand shifts occur.
Looking ahead, the equities market appears poised for a cautious continuation of the recovery. Technical signals suggest that resistance levels around 141,500 points will be key for the market to sustain upward momentum, while support near 140,500 points offers a buffer against short-term corrections. Investors are likely to continue favoring high-volume, blue-chip stocks, while selective mid-cap and consumer-oriented equities could see opportunistic buying depending on liquidity and corporate news flow. Macro-economic factors such as domestic inflation trends, exchange rate volatility, and policy developments will remain critical in shaping market sentiment, alongside global cues such as crude oil prices and international risk appetite.
The session concluded with the NGX All-Share Index rising by 0.31% to close at 141,149.04 points from 140,716.10 in the previous session. Market capitalization increased by N279.37 billion, bringing the total to N89.34 trillion, while year-to-date returns reached 37.14%. Market breadth was positive, with 31 gainers against 21 decliners. MECURE led the gainers, climbing past its 52-week high at N26.10, followed closely by OANDO with a 9.50% gain and DANGSUGAR at 4.38%. On the other hand, ETERNA topped the decliners, and VFDGROUP recorded a 52-week low at N10.40. Total trading volume surged 1,137.15% to 5.48 billion shares, valued at N419.73 billion across 20,399 deals. ARADEL was the most actively traded stock, accounting for 12.66% of total volume and an overwhelming 92.49% of the total value, followed by MTNN and ZENITHBANK, highlighting the concentration of investor interest in a handful of large-cap equities.
