Onome Amuge
Nigeria’s equities market ended the week marginally higher despite three straight days of losses, as renewed institutional activity and pockets of strong corporate optimism helped offset cautious sentiment ahead of the third-quarter earnings season.
The NGX All-Share Index advanced 0.20 per cent week-on-week to close at 142,133.02 points, while market capitalisation climbed 0.24 per cent to N89.96 trillion. That added investor wealth of N215.86 billion, stretching year-to-date returns to 38.09 per cent, among the strongest in frontier markets.
Meanwhile, market breadth leaned negative at 0.64x as 32 gainers were outpaced by 50 losers, indicating the week’s advance was concentrated in a few strong names rather than broad-based strength.
The market suffered a bruising start, with losses of N219.65 billion on Monday, N326.17 billion on Tuesday, and N135.13 billion on Wednesday, as profit-taking set in following a strong September rally. Thursday brought a sharp rebound, with investors clawing back N279.37 billion, and Friday extended the recovery with a further N617.45 billion gain.
Despite the mixed sentiment, liquidity was markedly higher. Weekly turnover rose to 7.68 billion shares worth N494.1 billion, against 2.74bn shares valued at N85.2 billion in the prior week. Analysts said the increase, largely driven by block trades in Unity Bank, Aradel Holdings and Consolidated Hallmark Holdings, pointed to active portfolio rebalancing by institutional investors positioning ahead of third-quarter earnings and quarter-end reporting.
The Financial Services sector dominated activity, accounting for 83.3 per cent of volume and 14.5 per cent of value. Oil and Gas followed, contributing N391.4 billion in value across 730.5 million shares, reflecting heightened interest in energy counters amid firmer oil prices.
By sector, the NGX Industrial Goods Index led with a 1.33 per cent gain, followed by Banking (+1.19 per cent) and Consumer Goods (+1.15 per cent). Analysts attributed the performance to bargain-hunting in fundamentally strong counters, spurred by expectations that improved foreign-exchange liquidity and firmer oil receipts will provide a tailwind to corporate earnings.
Insurance (-0.91 per cent), Oil & Gas (-1.62 per cent) and Commodities (-0.91 per cent) indices slipped, reflecting profit-taking after recent rallies and a wait-and-see stance on potential policy changes.
Thomas Wyatt Nigeria was the week’s standout performer, rallying 22.7 per cent. Once a relatively illiquid counter, the printing and packaging company has recently benefitted from speculative flows and renewed demand from retail investors positioning for a turnaround story. Analysts caution, however, that its fundamentals remain stretched.
Secure Electronic Technology (NSLTECH) rose 21.3 per cent, fuelled by optimism around its restructuring efforts and the broader fintech narrative that continues to draw speculative interest.
MeCure Industries, a pharmaceutical manufacturer, advanced 20.8 per cent, extending a rally supported by investor rotation into healthcare stocks as consumer demand for medicines remains resilient despite inflationary pressures.
Chellarams, a diversified trading and manufacturing group, rose 11.3 per cent, while Royal Exchange (ROYALEX) gained 10.3 per cent, reflecting renewed appetite in mid-cap consumer and insurance names.
At the other end of the spectrum, Wema Bank slumped 12.4 per cent, hit by heavy profit-taking after its strong year-to-date rally. Fidelity Bank shed 11.1 per cent, as investors weighed its recently released H1 earnings against expectations for a slower loan growth trajectory in the second half.
Energy group Eterna dropped 10 per cent, while Ikeja Hotel and Afriprudential lost 9.8 per cent and 9.1 per cent respectively, reflecting a broader rotation away from mid-cap names that had rallied sharply earlier in the quarter.
Analysts argue that despite selective pullbacks, the equity market remains well positioned. Improved liquidity in Nigeria’s foreign-exchange market following recent policy adjustments, rising oil prices, and stronger-than-expected second-quarter GDP growth of 4.23 per cent are keeping institutional investors engaged.
The Monetary Policy Committee’s 50 basis-point cut in the Monetary Policy Rate to 27.0 per cent has also buoyed equities, as lower yields on government securities redirect flows toward riskier assets.
Looking into the new week, analysts expect the market to retain a cautiously bullish tone. Attractive valuations, portfolio rebalancing, and optimism over earnings could sustain momentum, even as weak breadth and persistent profit-taking keep sentiment selective.
