Equity Investors Gain N822bn, Looming Q3 Earnings Present Upside
Equity investors gained N822 billion, and stockbrokers are anticipating a fresh rally in the Nigerian Exchange (NGX) listed companies in anticipation of the third-quarter earnings release.
The market capitalisation expanded week on week as a result of renewed interest in stocks with strong fundamentals, though overall trading activity was somewhat muted as weak sentiment in the banking sector weighed on momentum.
The NGX All-Share Index advanced by 0.92% week-on-week to close at 141,845.35 points, driven by renewed investor interest in fundamentally sound names.
This came against the backdrop of fresh half-year financial results from major banks, which triggered sell-offs across their tickers and kept market mood cautious, Cowry Asset Limited said in its update.
Stockbrokers spotted portfolio rebalancing efforts and selective positioning, with investors factoring in the latest macroeconomic data showing headline inflation easing to 20.12% in August 2025.
“With this backdrop, all eyes are now on the upcoming Monetary Policy Committee (MPC) meeting, where speculation about a possible rate cut is heightening,” Cowry Asset Limited highlighted.
The Nigerian Exchange market capitalisation surged by 0.92% week-on-week to N89.74 trillion, thereby delivering weekly investor gains of N822.25 billion.
Hence, year-to-date return of the index improved further to 37.81%, a clear signal of the underlying bullish sentiment that has persisted despite intermittent bouts of profit-taking.
Trading details revealed that market breadth was relatively balanced, with 42 gainers against 41 losers, underscoring the cautious but steady tone.
Activity levels, however, were less impressive, stockbrokers said. Total deals conducted in the market slipped by 4.17% week-on-week to 127,333 trades.
Also, the total volume and value of all transactions in the local bourse declined by 14.20% and 14.51%, respectively, to settle at 2.74 billion units and N85.23 billion.
This reflects a quieter market as investors awaited stronger directional cues from policy and earnings, stockbrokers stated in a review note.
Sectoral performance provided a mixed picture. Four of the six major sectoral indices advanced, underscoring the pockets of optimism still present in the market.
The Consumer Goods index led the pack, climbing by 5.48% week-on-week on the back of strong price movements in UNILEVER, Nigerian Breweries, May & Baker, and Cadbury.
Gains were also recorded across the Oil & Gas (+2.79%), the Commodity (+1.42%), and Industrial (+0.05%) indices, reflecting investor confidence in the resilience of these sectors.
In contrast, the Banking index shed 2.57% week-on-week as stocks such as UBA, Wema Bank, Sterling, and Zenith Bank came under heavy sell pressure following the release of their financials.
Insurance names also lagged, with the Insurance index falling by 4.67% as Cornerstone, Royal Exchange, Veritas Kapital, and WAPIC Insurance drove negative sentiment.
Among individual stocks, GUINNESS Nigeria stood out as the best performer of the week, recording a 28.6% gain as investors repositioned strongly into the counter. Multiverse followed with a gain of 21.3%, while Eunisell and Etranzact advanced by 20.3% and 11.7% respectively.
Chelleram also caught investor interest with a 9.8% gain. On the other hand, Omatek emerged as the worst performer, losing 18.2% week-on-week, trailed by Cornerstone Insurance (-15.4%), NSL Tech (-12.8%), Royal Exchange (-11.3%), and UBA (-9.2%), as investors adopted a more cautious approach towards these counters.
In its projection for the new week, Cowry Asset Limited said investors are expected to trade cautiously but positively as they await the outcome of the MPC meeting next week.
Market analysts said the decision on interest rates will likely be a defining factor for portfolio rebalancing, particularly in light of the recently published consumer price index numbers which suggest a moderating inflation trend.
The firm added that anticipation of the Q3 2025 earnings season could also drive selective positioning across fundamentally strong names.
“From a technical standpoint, the NGX All-Share Index continues to sustain its bullish pattern, trading above key moving averages while forming higher highs and higher lows.
“This trajectory indicates that the uptrend remains intact and in bullish territory but is not yet overbought, leaving sufficient room for further upside”, Cowry Asset said. Geregu Power Targets N12.12 billion Profit in Q4-2025
