Market Update For December 8, 2025
The Nigerian equities market opened the new trading week on a firm and confident note, stretching its winning streak to the fifth consecutive session. Monday’s performance reflected a blend of sustained investor optimism and deliberate repositioning ahead of year-end portfolio adjustments. The tone of the market has remained largely positive as traders continue to rotate into fundamentally strong counters, particularly within the banking, industrial, and consumer sectors.
Activity throughout the session was dominated by strong demand in the banking space, with blue-chip names such as ZENITHBANK and GTCO attracting significant interest. This renewed accumulation underscores investors’ belief in the sector’s resilience, especially as earnings prospects and balance-sheet strengths remain relatively stable. The behaviour of both retail and institutional investors points to growing confidence in stocks that offer liquidity, strong fundamentals, and reasonable entry prices.
The broader market environment also played a role as global and local macroeconomic signals influenced trading sentiment. With expectations rising around upcoming monetary policy decisions and year-end financial disclosures, traders appear more willing to take calculated positions. Many investors are rebalancing portfolios, seeking exposure to low-risk, high-volume stocks that may provide capital appreciation and dividend support. This shift is evident in the strong volume recorded across select banking and consumer names, particularly FCMB and JAPAULGOLD, which led the trading charts by sheer number of units exchanged.
Despite the increased volume, the slight decline in total value traded indicates that market participants are adopting a measured accumulation pattern rather than making aggressive large-block purchases. This moderation reflects cautious optimism, as investors remain aware of potential macroeconomic triggers that could influence short-term volatility. Still, the steady interest in equities suggests confidence that the market remains well-positioned for further upside.
From a technical standpoint, the NGX remains in a clear uptrend. The All-Share Index continues to trade above both its 20-day and 50-day moving averages, providing a solid platform for further gains. Momentum indicators show strengthening buying pressure as inflows gradually improve, while selling activity remains relatively subdued. The index is now approaching a critical resistance zone around the 147,500 to 148,000 area, a level that traders are monitoring closely. A breakout above this range could pave the way toward the next significant psychological mark at 150,000 points. Support, on the other hand, remains firm around 146,200 points, with a secondary anchor point closer to 145,500.
Sector performance further confirmed the market’s bullish mood, with the banking, insurance, consumer goods, and industrial sectors all closing in positive territory. This broad strength suggests that the rally is not limited to a single cluster of stocks but is instead being supported by widespread interest across the market. Such breadth typically indicates healthy underlying momentum.
In the global oil market, prices retreated on Monday as traders monitored ongoing diplomatic efforts to resolve the war in Ukraine. Concerns over potential shifts in global supply dynamics, combined with anticipation of a U.S. Federal Reserve interest rate cut this week, contributed to the softer tone. Brent crude slipped to 63.18 dollars per barrel, while West Texas Intermediate declined to 59.51 dollars. However, losses eased slightly following reports that Iraq had shut down production at Lukoil’s West Qurna 2 field due to a pipeline leak. The field, which produces roughly 460,000 barrels per day, represents a significant source of Iraqi output, and its temporary closure provided some mild support for prices. Both Brent and WTI had ended last week at their highest levels since mid-November, reflecting earlier expectations of tighter supply, but the market remains sensitive to geopolitical developments and macroeconomic policy signals that could alter demand expectations.
Looking ahead, the outlook for the Nigerian market remains broadly positive. The combination of strong liquidity, improving risk appetite, and continued interest in fundamentally sound banking and industrial stocks suggests that the bullish trend could persist in the near term. While profit-taking may occur around major resistance levels, the underlying momentum appears strong enough to absorb temporary pullbacks. Investors may continue to engage in selective accumulation as they position for the final stretch of the year, with a particular focus on stocks offering attractive earnings visibility and dependable dividend potential.
The benchmark All-Share Index advanced by 0.26 percent on Monday to close at 147,426.95 points compared to 147,040.07 points previously. This lifted market capitalization by 247.19 billion naira to 93.97 trillion naira, with the year-to-date return settling at 43.24 percent. Market breadth remained positive with forty gainers against fifteen losers. Major drivers of the session included ZENITHBANK, which gained 4.50 percent, along with CADBURY, BERGER, WAPCO, PZ, GTCO, DANGSUGAR, and MTNN. MORISON topped the gainers’ chart while DAARCOMM led the losers. Total market volume rose significantly by 52.34 percent to 550.86 million units, while traded value amounted to 13.86 billion naira across 30,090 deals. FCMB dominated the volume chart with 129.65 million units traded, whereas ZENITHBANK remained the most traded stock by value at N2.71 billion.
