Bulls eye recovery as NGX slams brakes on weekly losses
The Nigerian equities market remained under intense selling pressure for the third consecutive week last week as profit-taking and market corrections dominated trading activities on the Nigerian Exchange (NGX).
However, a sharp, broad-based recovery on Friday cushioned the overall losses, creating attractive entry points for discerning investors ahead of the half-year corporate earnings season.
Despite Friday’s impressive rebound and a noticeable surge in market turnover, the benchmark NGX All-Share Index (ASI) wrapped up the week 1.21% lower at 229,240.34 points.
READ ALSO: Bulls dominate as Nigerian stock market rebounds with N3.16trn weekly gain
The index hovered near a critical breakout below its “T line,” which has acted as a key resistance level since June 2, 2026, underscoring recent market weakness. Similarly, total market capitalisation closed lower at ₦147.103 trillion, down from ₦148.91 trillion the previous week.
Most sectoral indices finished the week in the red, with the Oil and Gas Index suffering the heaviest weekly hit, plunging 4.34%. Conversely, the NGX Main Board Index managed to buck the trend, posting a gain of 2.27%.
Weekly vs. year-to-date (YTD) performance:
NGX ASI: WTD: -1.21% | YTD: +47.31%
NGX 30: WTD: -1.09% | YTD: +46.67%
Banking Index: WTD: +3.72% | YTD: +35.31%
Pension Index: WTD: -2.10% | YTD: +55.41%
Insurance Index: WTD: -2.52% | YTD: -8.43%
Consumer Goods Index: WTD: -1.60% | YTD: +14.47%
Oil and Gas Index: WTD: -4.34% | YTD: +82.04%
Trading activity and sector dominance
Investor participation saw a massive boost this last. A total of 3.821 billion shares valued at ₦154.393 billion changed hands in 258,567 deals, representing a significant 64.41% increase in volume and a 14.80% jump in value compared to the previous week’s 2.324 billion shares (worth ₦134.486 billion).
Financial services sector maintained its leadership position, clearing 2.330 billion shares worth ₦54.606 billion across 108,978 deals. This accounted for 60.99% of the total market volume.
Services sector followed in second place with 509.473 million shares valued at ₦16.353 billion, overtaking the ICT sector which dominated the runner-up spot the previous week.
Consumer goods sector positioned third, recording 216.344 million shares worth ₦8.057 billion.
Top volume drivers
The trio of Sterling Financial Holdings Plc, Access Holdings Plc, and Ikeja Hotel Plc dominated the activity chart. Together, they accounted for 1.405 billion shares worth ₦28.370 billion, contributing 36.78% of the total weekly volume.
Daily market review
Monday: The week opened on a bearish note, shedding 1.57% to close at 228,401.92 points due to sustained profit-taking. MTNN, Unilever, Cadbury, and Wema Bank led 47 decliners against just 13 gainers.
Tuesday: The bulls made a brief appearance as the index ticked up 0.45% to 229,419.18 points, adding ₦652.77 billion to investor wealth. Linkage Assurance topped volume, while Aradel led in trade value.
Wednesday: Bears reclaimed control, pulling the index down by 1.63% to 225,690.07 points. Investors lost ₦2.39 trillion in a single session, with Sterling Bank leading volume and Zenith Bank topping value.
Thursday: The downturn continued with a 0.61% drop to close at 224,321.97 points. Heavyweights like FCMB, FBN Holdings, Oando, Zenith Bank, and WAPCO dragged the market lower.
Friday: A spectacular 2.19% rally saved the market from a deeper crash, injecting ₦3.16 trillion back into equities. Market sentiment flipped with 39 gainers against 15 losers, driven by aggressive bargain hunting in banking, telecom, and energy blue-chips. Zenith Bank closed as the most active stock.
Top gainers and losers
Weekly top gainers
Airtel Africa Plc: +21.00% (rose from ₦4,358.80 to ₦5,274.00)
Regency Assurance Plc: +20.25% (rose from ₦0.79 to ₦0.95)
UPDC Plc: +12.31% (closed at ₦3.65)
DAAR Communications Plc: +7.84% (closed at ₦1.65)
SUNU Assurances Nigeria Plc: +7.50% (closed at ₦3.87)
Weekly top losers
International Energy Insurance (IEI) Plc: -18.83% (dropped from ₦5.79 to ₦4.70)
McNichols Plc: -18.60% (dropped to ₦7.00)
University Press Plc: -17.54% (dropped to ₦4.70)
RT Briscoe Plc: -13.98% (closed at ₦10.15)
UPDC Real Estate Investment Trust: -13.00% (closed at ₦8.70)
The formation of a hammer candlestick pattern on the weekly chart indicates a strong potential trend reversal from the recent multi-week decline. While the index successfully reclaimed the 229,000 mark on Friday, it needs to cross the immediate resistance zone of 230,000–232,000 points on high volume to confirm a full recovery. If momentum stalls, the market could retest the 225,000-point support level.
Heading into the new week, analysts anticipate continued positioning in value stocks as investors eye upcoming interim dividends and half-year corporate scorecards. However, domestic macroeconomic realities—such as the slight dip in June’s Purchasing Managers’ Index (PMI) to 53.7 points (from 54.1 in May), inflation metrics, and shifting fixed-income yields—will heavily weigh on market directions.
Local economy
Petrol Price Reductions: The Federal Government, via Petroleum Minister Heineken Lokpobiri, has directed oil marketers to lower retail petrol prices in line with dipping global crude benchmarks. The FCCPC has threatened sanctions against non-compliant operators.
Understated Fiscal Deficit: The IMF reported that Nigeria omitted public spending worth roughly 2% of its GDP from past budgets. IMF Resident Representative Christian Ebeke noted that the federal government is actively reviewing its framework to address these fiscal reporting gaps.
Global markets & oil
Global equities enjoyed their strongest week in two months, driven by lower-than-expected US jobs data, which boosted hopes that the Federal Reserve may pause further interest rate hikes.
The European STOXX 600 hit a fresh record high, climbing 2.6% for the week.
In Asia, South Korea’s KOSPI jumped nearly 6% on a tech rebound, while Japan’s Nikkei 225 gained 1.5% as domestic services metrics expanded.
The US dollar cooled off, prompting a safe-haven rally for Gold, which gained 1.8% to cross $4,160 per ounce.
In the energy commodities market, Brent crude edged up 0.45% to settle at $71.12 per barrel, supported by optimistic global demand sentiment despite lingering supply chain concerns around the ongoing closure of the Strait of Hormuz.
