October 06, (THEWILL) — The Nigerian Exchange (NGX) recorded a shortened four-day trading week as Wednesday, October 1 was observed as a public holiday. Despite the shorter trading period, activity levels remained elevated, with total turnover of 8.403 billion shares worth N115.501 billion, compared with 7.759 billion shares valued N494.126 billion in the previous week.
The Financial Services industry again led the activity chart with 7.750 billion shares valued at N88.153 billion, followed by the ICT industry with 181.005 million shares worth N4.077 billion, and the Consumer Goods industry with 126.554 million shares worth N6.274 billion. The top three equities by volume were Cornerstone Insurance Plc, Fidelity Bank Plc, and United Bank for Africa Plc.
Market Indices:
The NGX All-Share Index (ASI) appreciated by 1.02%, while Market Capitalisation rose 1.31%. advancing from 142,133.03 and ₦89,960,273,639,306.5 to close the week at 143,584.04 and ₦91.135 trillion respectively.
Market Breadth:
A total of 53 equities appreciated in price during the week, higher than 32 recorded in the previous week. Conversely, 43 equities declined, compared to 51 in the prior week, while 51 remained unchanged, slightly lower than 64 previously.
Top Gainers:
- Eterna Plc: +32.80% ([₦27.90 → ₦37.05])
- Nigerian Enamelware Plc: +20.94% (₦35.10 → ₦42.45)
- PZ Cussons Nigeria Plc: +20.87% (₦34.50 → ₦41.70)
Top Decliners
- Julius Berger Plc: -17.79% (₦149.50 → ₦122.90)
- International Energy Insurance Plc: -11.08% (₦3.34 → ₦2.97)
- Union Dicon Salt Plc: -10.00% (₦9.00 → ₦8.10)
Market Performance & Driving Forces:
The equities market posted a strong rebound this week, buoyed by renewed investor demand in consumer goods and industrial stocks. Gains in Eterna, PZ Cussons, and Enamelware signaled fresh sector rotation into manufacturing and energy counters, reflecting both speculative flows and a search for value plays beyond financials.
Block trades and sustained liquidity in banking stocks—particularly Cornerstone Insurance, Fidelity Bank, and UBA—helped keep turnover robust. Additionally, improving FX stability and upbeat corporate actions have continued to underpin positive investor sentiment.
Market Health Compared to Previous Week:
Market breadth improved significantly, with more advancers (53 vs. 32) and fewer decliners (43 vs. 51), suggesting a healthier market structure. However, the steep fall in Julius Berger and continued weakness in select insurance and industrial counters highlights that profit-taking remains active in certain names.
Investor Sentiment and Economic Effect:
Investor sentiment was cautiously optimistic this week. The higher number of gainers indicates broader participation, and the uptick in market capitalisation suggests stronger confidence in equities as a hedge against inflation and currency risks. This renewed momentum could support capital formation and business expansion in key sectors like consumer goods, energy, and financial services, providing some spillover benefit to the wider economy.
Outlook for Next Week:
Looking ahead, the market may sustain its upward bias, supported by positive momentum in high-performing consumer goods and industrial stocks. However, analysts caution that bouts of profit-taking may persist, especially in counters that have seen sharp gains. The resilience of the financial services sector and continued FX stability will remain critical in determining whether the rally consolidates or pauses.
If current liquidity levels are maintained, the market is well-positioned to extend its gains into the new week, albeit with pockets of volatility.
“Next week, we expect investors to trade cautiously in the absence of clear catalysts to drive market performance. However, we do not rule out reactions to sector and company-specific developments, which could influence the market’s direction,” said analysts at Cordros Research.
“If the CBN does not conduct another mop-up operation next week, we expect liquidity to remain robust, given the meagre sale (NGN98.00 billion) made by the CBN in today’s OMO auction. Thus, we expect the OVN rate to taper marginally. Strong system liquidity should sustain demand for bills, exerting further downward pressure on yields.
“We expect demand in the FGN bond secondary market to remain strong, owing to the robust system liquidity and the recent MPR cut. We also reiterate our expectations of a cautious stance at the long end of the curve, amid persistent concerns over fiscal sustainability and heightened duration risk,” they added concerning the money market.
Ogochukwu Onwaeze
