October 12, (THEWILL) — The Nigerian Exchange (NGX) closed the week ended Friday, October 10, 2025, on a positive trajectory as renewed investor confidence and improved liquidity conditions lifted the equities market. The All-Share Index (ASI) appreciated by 2.37%, rising from 144,822.78 to 146,988.04 while market capitalisation increased from ₦91.921 trillion to ₦93.296 trillion — representing a ₦1.37 trillion gain for investors within the five-day trading period.
The upbeat close marks the second consecutive weekly gain and underscores renewed optimism across major sectors, driven by anticipatory positioning ahead of Q3 2025 corporate earnings and a more stable macroeconomic environment.
Market Activity and Turnover:
The NGX recorded a total turnover of 2.286 billion shares valued at ₦90.289 billion traded across 51,556 deals, compared with 2.173 billion shares worth ₦63.179 billion in 54,455 deals recorded the previous week — indicating both higher trading value and volume.
The Financial Services Industry once again led market activity with 1.355 billion shares valued at ₦24.588 billion, contributing 59.28% and 27.23% to the total equity turnover volume and value respectively. The ICT Industry followed with 182.822 million shares worth ₦7.807 billion, while the Agriculture Industry secured the third position with 181.501 million shares valued at ₦3.548 billion.
The surge in ICT and agricultural counters signals gradual diversification of investor interest beyond traditional banking and industrial segments.
Gainers and Losers:
The market breadth for the week was slightly positive: 51 equities appreciated in price, lower than 53 in the previous week, while 46 equities declined, fewer than 43 recorded previously. Fifty-five (55) equities remained unchanged, higher than 51 in the preceding week — showing overall market stability despite intermittent profit-taking.
Top gainers for the week include:
- Sovereign Trust Insurance Plc (+16.73%) (₦2.75 → ₦3.21)
- Omatek Ventures Plc (+12.30%) (₦1.22 → ₦1.37)
- AXA Mansard Insurance Plc (+11.81%) (₦14.40 → ₦16.10)
- Chams Holding Company Plc (+11.69%) (₦3.85 → ₦4.30)
Top decliners were led by:
- LivingTrust Mortgage Bank Plc (-14.61%) (₦6.09 → ₦5.20)
- Neimeth Pharmaceuticals Plc (-10.96%) (₦6.75 → ₦6.01)
- UH Real Estate Investment Trust (-9.98%) (₦58.60 → ₦51.85)
- Meyer Plc (-9.85%) (₦16.75 → ₦15.10)
- Juli Plc (-9.60%) (₦9.90 → ₦8.95)
Bonds and Fixed Income Segment:
Investor activity also picked up in the bond market. A total of 948,209 bond units valued at ₦883.36 million were traded this week — a remarkable increase compared to 64,033 units worth ₦77.67 million in the previous week.
The surge in bond transactions reflects renewed demand for fixed-income instruments as investors seek to rebalance portfolios amid the CBN’s persistent liquidity tightening measures and higher yield opportunities in the short-term debt market.
Market Drivers and Sector Performance:
This week’s positive sentiment was largely driven by accumulation in industrial goods, insurance, and select ICT stocks, buoyed by stabilising exchange rates and improving macroeconomic signals.
The industrial sector, led by renewed interest in blue-chip equities such as Dangote Cement and BUA Cement, provided strong support for overall index growth. The insurance sector maintained a steady upward trajectory as investors positioned ahead of expected positive Q3 earnings and consolidation trends within the space.
However, the banking index (-0.41%), ASeM (-9.44%), and AFR Bank Value Index (-1.00%) all declined, reflecting constrained liquidity conditions and cautious sentiment in the financial services space following the Central Bank’s aggressive Cash Reserve Ratio (CRR) debits and continued Open Market Operations (OMO) mop-ups.
Economic Context:
The performance of the equities market aligns with broader improvements in Nigeria’s macroeconomic landscape. The Purchasing Managers’ Index (PMI) for September remained above the 50-point threshold, indicating continued expansion in business activity — particularly across services and manufacturing.
Similarly, relative FX market stability and declining speculative demand have supported improved investor confidence. Though headline inflation remains above 30%, there are emerging signs of moderation in food and non-core prices, suggesting that recent monetary tightening may be filtering through to the real economy.
Market Sentiment and Investment Outlook:
Investor sentiment remained broadly positive through the week, underpinned by moderate risk appetite and expectations of stronger corporate earnings. The consistent uptrend in the ASI and market capitalisation points to sustained accumulation in fundamentally sound counters.
The equities market has now gained 2.37% this week alone, bringing the year-to-date return close to 41%, making it one of Africa’s best-performing markets in 2025.
With improved transparency in FX management and fiscal reforms underway, the NGX is increasingly positioned to attract foreign portfolio inflows in the coming weeks — particularly from funds seeking stable, high-yield frontier market exposure.
The week’s performance underscores growing investor confidence in Nigeria’s capital market resilience despite monetary tightening pressures. As Q3 earnings season approaches, traders expect activity levels to remain high, driven by positioning in dividend-paying and value-oriented stocks.
While inflationary risks and liquidity constraints persist, the equities market’s strong close above 146,900 points reinforces its role as a hedge against currency volatility and a key driver of wealth creation in Nigeria’s evolving investment landscape
Ogochukwu Onwaeze
