Nigerian Stocks Set for Bullish Week as Investor Confidence Strengthens and Inflation Eases
Analysts have expressed optimism that the Nigerian equities market will sustain its upward momentum this week, buoyed by improving investor sentiment, easing inflation, and stronger corporate performance. The market has shown remarkable resilience in recent weeks, with investors displaying growing confidence in the nation’s macroeconomic stability and corporate earnings potential.
Last week, the Nigerian Exchange (NGX) All-Share Index extended its winning streak, climbing to a new 52-week high and nearing the 150,000 psychological threshold before settling at 148,977.64 points—a 1.35 percent week-on-week gain. The rally was fueled by renewed buy interest in mid- and large-cap blue-chip stocks, as well as strategic sector rotation by investors responding to Nigeria’s moderating inflation rate, which eased to 18.02 percent in September. Consequently, the market capitalization of listed equities rose by ₦1.26 trillion, closing at ₦93.29 trillion.
Market analysts are forecasting a possible breakout above the 150,000 resistance level in the coming days. According to Cowry Asset Management Limited, the bullish momentum could continue if third-quarter (Q3) corporate earnings outperform expectations. The firm, however, cautioned that some short-term profit-taking may occur as traders lock in gains from the recent rallies. “Overall, market performance will likely hinge on macroeconomic developments and policy signals from monetary authorities,” Cowry Asset noted, urging investors to focus on fundamentally strong stocks with robust earnings potential.
Similarly, analysts at Afrinvest Limited maintained a positive outlook, citing the favorable disinflation trend and potential renewed portfolio inflows from global investors navigating policy uncertainty in advanced markets. Imperial Asset Managers Limited, on the other hand, expects a more cautious trading pattern this week, with range-bound movements as investors weigh profit-taking opportunities against bargain-hunting amid ongoing Q3 2025 earnings releases.
Trading data from the NGX showed strong participation across major sectors. The Financial Services Industry dominated activity, accounting for 68.65 percent of total trading volume with 1.662 billion shares worth ₦32.56 billion. It was followed by the ICT sector, which recorded 184.88 million shares valued at ₦8.66 billion, and the Services Industry, with 154.54 million shares worth ₦1.07 billion. The top three traded equities — Consolidated Hallmark Holdings, Fidelity Bank, and Access Holdings — collectively accounted for over 25 percent of total market volume, underscoring investors’ continued preference for liquid, high-performing financial stocks.
source: Leadership