Nigerian Equities Surge 2.88% As Investors Go For Value, Market Recovers From Multi-Year Low

Market Update For November 12, 2025

The Nigerian equities market staged an impressive rebound on Wednesday, breaking a prolonged losing streak that had pushed the market to its lowest level since 2010. The recovery came as renewed buying momentum swept across key sectors, driven by bargain hunting, improved liquidity, and renewed institutional interest in fundamentally strong stocks.

After several sessions of persistent sell pressure, Wednesday’s broad-based rally marked a turning point for the local bourse, reflecting investor confidence in the long-term fundamentals of the Nigerian economy and listed corporates. The sharp rebound came amid attractive valuations, strong earnings outlooks, and expectations of a near-term policy stabilization that could bolster capital inflows. The renewed optimism was evident as investors re-entered the market in response to low price levels across blue-chip counters and improved sentiment following a series of positive macroeconomic signals.

Market sentiment turned positive early in the trading session as investors engaged in aggressive bargain hunting in large-cap banking and energy stocks that had been deeply oversold. The mood shift was further strengthened by renewed risk appetite from domestic institutional investors and foreign portfolio investors who sought exposure to Nigeria’s equities after a period of underperformance.

The market’s upturn was particularly strong in the banking, oil & gas, and consumer goods sectors, which had suffered significant markdowns over the past week. In the banking space, heavyweights such as GTCO, ZENITHBANK, UBA, and ACCESSCORP rallied sharply as investors anticipated sustained earnings growth and attractive dividend yields. In the energy sector, stocks like OANDO and TRANSCORP saw massive buy-side activity, reflecting expectations of improved profitability amid a stable crude oil outlook and renewed optimism in Nigeria’s domestic energy reforms. The industrial and consumer goods sectors also witnessed notable gains as investors repositioned in NB, PZ, and NASCON, buoyed by the expectation of improved consumer spending and cost management benefits from forex adjustments.

The day’s positive performance was also supported by stronger market breadth, as gainers significantly outnumbered losers. Investor confidence was further lifted by increasing participation from pension funds and asset managers, who sought to take advantage of the attractive entry points created by recent market corrections. Many investors viewed the market’s earlier weakness as a temporary adjustment phase, positioning themselves strategically ahead of year-end portfolio rebalancing and dividend declaration season.

From a broader perspective, the rebound aligns with global equity market sentiment, where risk assets have seen renewed interest following mixed inflation data and expectations of a more accommodative stance from central banks. Locally, improving investor perception of Nigeria’s monetary and fiscal coordination, coupled with the government’s ongoing economic reforms, has begun to restore optimism among institutional players.

Market activity surged notably, reflecting the renewed enthusiasm among investors. Total traded volume rose 22.94% to 806.40 million units, while total value traded jumped to ₦50.78 billion across 24,509 deals. This robust turnover underscored the strong inflows into large-cap stocks and the high level of speculative and institutional participation in the session. GTCO dominated the volume chart with 104.78 million units traded, accounting for 12.99% of total market activity. ZENITHBANK and STANBIC followed closely, contributing 10.76% and 5.41%, respectively. On the value chart, ARADEL emerged as the most traded equity, accounting for ₦12.91 billion (25.42%) of the total market value, trailed by GTCO and MTNN, both of which attracted significant buy orders.

Meanwhile, on the global commodities front, crude oil prices declined by more than 2% on Wednesday, pressured by growing oversupply concerns. The Organization of the Petroleum Exporting Countries (OPEC) projected that global oil supply will balance with demand by 2026, a notable shift from its earlier forecast of a potential supply deficit. This outlook dampened sentiment in the oil market, with Brent crude slipping $1.35 (2%) to $63.81 per barrel, while U.S. WTI fell $1.36 (2.2%) to $59.68 per barrel. However, the International Energy Agency (IEA) provided a contrasting perspective, forecasting in its latest World Energy Outlook that oil and gas demand could continue to rise until 2050, driven by ongoing global industrial expansion and limited transition away from fossil fuels in emerging economies.

Technically, Wednesday’s performance suggests that the Nigerian market may have established a near-term support level after testing multi-year lows. The All-Share Index (ASI) showed strong bullish momentum, forming a breakout pattern on the daily chart. Key momentum indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) turned positive, signaling renewed buying pressure and a possible trend reversal. However, sustaining this rally will depend on follow-through demand in subsequent sessions and the ability of the index to hold above the 145,000-point threshold.

In the medium term, traders are expected to adopt a cautious optimism approach as the market navigates through earnings season, monetary policy updates, and year-end rebalancing by institutional investors. Sector rotation and profit-taking may shape short-term performance, but the broader outlook remains constructive given the attractive valuations and resilient corporate fundamentals.

At the close of trading, the All-Share Index (ASI) advanced by 2.88% to close at 145,403.83 points, compared to 141,327.30 points in the previous session. Market capitalization rose by ₦2.59 trillion to ₦92.48 trillion, pushing the year-to-date (YTD) return to 41.27%. The rally was driven by price appreciation in heavyweights such as OANDO (+10.00%), ACCESSCORP (+10.00%), PZ (+10.00%), NB (+10.00%), ZENITHBANK (+10.00%), GTCO (+10.00%), ETI (+10.00%), NAHCO (+9.99%), TRANSCORP (+9.97%), and MTNN (+9.95%). ROYALEX topped the gainers’ list, while VITAFOAM led the losers.

Overall, the day’s performance underscored renewed investor confidence in Nigeria’s equities market following weeks of declines. With improved sentiment, stable macroeconomic indicators, and technical support holding firm, the outlook for the near term remains positive. Investors are, however, advised to maintain selective positioning in fundamentally sound stocks while monitoring liquidity trends, fiscal developments, and global oil price movements that could shape sentiment in subsequent trading sessions.