Market Review:
The Nigerian equities market extended its winning streak on Thursday, delivering a fifth consecutive bullish session as investors continued to take positions in fundamentally strong stocks. The NGX All-Share Index (ASI) advanced by 0.21%, climbing 300.48 points to close at 140,665.84 from the previous session’s 140,365.36 points. This sustained uptrend lifted market capitalisation by ₦190.13bn to ₦89trn, while the year-to-date (YTD) return improved further to 36.67%, underscoring the resilience of the market despite a challenging macroeconomic environment marked by high inflation, tight liquidity, and volatile currency conditions.
Buying interest remained strong across key sectors, as bargain hunters targeted quality stocks with attractive valuations and potential for capital gains. The rally was particularly driven by gains in GUINNESS (+10.00%), CAP (+9.23%), NGXGROUP (+4.89%), and HONYFLOUR (+4.07%), reflecting renewed optimism in consumer goods and industrial counters. Banking heavyweights also contributed to the bullish tone, with UBA (+2.34%), ZENITHBANK (+1.52%), GTCO (+0.27%), and FIDELITYBK (+0.24%) all closing higher on the back of sustained demand ahead of Q3 earnings expectations.
Market breadth remained positive, with 41 gainers outweighing 12 decliners, highlighting broad-based investor confidence. CILEASING, GUINNESS, and LIVINGTRUST topped the gainers’ chart, while NEM led the day’s losers. Notably, ETRANZACT and NCR crossed fresh 52-week highs at ₦13.60 and ₦15.20 respectively, signaling continued accumulation by investors anticipating further upside.
Market Activity:
While sentiment remained upbeat, market activity slowed compared to the previous session. Total traded volume declined by 50.74% to 378.18m units, with a total value of ₦12.41bn exchanged in 22,935 deals. JAPAULGOLD emerged as the most traded stock by volume, accounting for 11.12% of total turnover with 42.05m units. ZENITHBANK maintained its dominance on the value chart with ₦1.87bn worth of shares traded, representing 15.05% of total transaction value. NB and UBA followed closely as top value contributors, pointing to sustained institutional participation in tier-1 banking and consumer goods names.
Sector Performance:
The rally was broad-based as most sectoral indices closed in the green. The Banking Index gained momentum on renewed interest in ZENITHBANK, UBA, and GTCO. The Consumer Goods Index was lifted by strong demand in GUINNESS and HONYFLOUR, while the Industrial Goods Index benefitted from price appreciation in CAP. This sector-wide strength reflects ongoing portfolio rebalancing as investors position for medium-term returns.
Technical View:
Technically, the NGXASI remains firmly in a bullish channel, trading well above its short- and medium-term moving averages. Immediate support is pegged at the 140,000 psychological level, which has so far held firm despite profit-taking pressures earlier in the week. Resistance is now seen around 141,200 points. A decisive breakout above this level could trigger fresh buying interest, opening room for a potential rally toward 142,000 points. However, technical indicators suggest that the index is approaching overbought territory, meaning some profit-taking could surface in the coming sessions.
Volume patterns also suggest that while overall turnover declined, buying pressure is still evident in key large-cap stocks, which bodes well for market stability in the short term. Investors should keep an eye on market breadth and volume as leading indicators for the next price move.
Market Outlook:
Given the prevailing bullish sentiment, we expect the market to sustain its positive momentum in the near term, supported by positioning in dividend-paying and fundamentally strong stocks. The upcoming corporate earnings season and quarter-end portfolio adjustments are likely to drive further activity, particularly in the banking and consumer goods sectors. Nonetheless, we caution that profit-taking could set in at higher levels, especially around the 141,200 – 142,000 resistance zone. Active traders should adopt a cautious but opportunistic approach, taking advantage of pullbacks to accumulate value stocks.
Oil Market Update:
In the global commodities space, crude oil prices retreated as supply-side concerns overshadowed geopolitical tensions in the Middle East and disruptions from the Russia-Ukraine conflict. Brent crude dropped 1.7% to $66.36 per barrel, while WTI shed 1.8% to $62.51 per barrel by 13:19 GMT. The decline was largely driven by bearish IEA projections of a potential market surplus in 2026, which could weigh on prices going forward if demand fails to keep pace.
