Market Performance and Technical Outlook
The nation’s stock market closed on a negative note for the second consecutive week, after breaking down the strong support level of 140,000. This was followed by selloffs and profit booking, although there was a seeming rebound on the last trading session of the week, allowing the index to finish above the 141,000 psychological line due to renewed positioning in some major sectors.
As market players continued their revaluation, sector rotation, and portfolio rebalancing, insurance stocks became a focal point after pulling back on profit taking. This came ahead of some banks’ interim dividend announcements, which had triggered positioning in these banks before their scorecards hit the market any moment from this new week until the end of the quarter.
Even as the pullbacks created buy opportunities into other sectors and stocks that supported the reversal on Friday. Below is the daily chart and market performance on daily review.
NGXASI Daily Chart
The Nigerian stock market opened the week on a positive note, with the NGX ASI up 0.07% to 144,722.47 points, adding N59.64bn to close at N91.56trn as gains in CUSTODIAN, DANGSUGAR, UNILEVER, and CADBURY lifted sentiment.
However, the momentum was short-lived, as profit-taking dragged the index lower through midweek. By Thursday, the ASI had shed 3.03% in four sessions to 140,332.44 points, with losses in DANGCEM, BUACEMENT, GUINNESS, MTNN, and CONOIL driving market capitalization down to N88.78trn.
The market bounced back on Friday, gaining 0.48% to 141,004.14 points, supported by renewed interest in BETAGLAS, CAP, MECURE, ZENITHBANK, and NB. Still, the index closed the week over 2% lower, while the year-to-date return moderated to 37.00%.
Market breadth was mostly negative during the week, except Friday when gainers (49) strongly outpaced losers (11). Several stocks, including BETAGLAS, NCR, MECURE, ENAMELWA, and AUSTINLAZ, touched new 52-week highs.
Trading activity was volatile, with turnover falling midweek but rebounding sharply on Friday. Total weekly activity peaked at 1.30bn units worth N47.84bn, driven largely by ZENITHBANK, which also led in value at N21.23bn.
NGXASI Weekly Chart
Week-to-date, the All-Share Index has declined by 2.51%, with the NGX 30 falling by 2.69%. The Banking Index posted a loss of 3.48%, the Pension Index declined by 2.14%, the Insurance Index climbed by 4.17%, and the Consumer Goods Index increased by 0.83%. Oil and Gas Index decreased by 0.84%.
On a year-to-date basis, the All-Share Index is up 37.00%, while the NGX 30 has gained 34.84%. The Banking Index surged 42.67%, the Pension Index jumped 48.41%, the Insurance Index rose 80.62%, and the Consumer Goods Index posted a robust 85.89% increase. However, the Oil and Gas Index declined by 12.03%. Market breadth is negative, with 43 stocks advanced and 54 declined.
Austin Laz Weekly Chart
Leading the top gainers chart for the week are: Austin Laz & Company Plc, a Nigerian company engaged in the manufacturing and sales of industrial and consumer goods, with a focus on products such as cooling systems, household appliances, and other electrical/electronic equipment, which rose from N2.40 to N2.90, gaining 20.83%. NCR Nigeria Plc advanced from N8.70 to N10.50, up 20.69%, while Nigerian Enamelware Plc increased from N32.65 to N39.00, a 19.45% rise.
Guinea Insurance Plc climbed from N1.49 to N1.77, up 18.79%, and Mutual Benefits Assurance Plc gained 14.29%, rising from N3.85 to N4.40.
Thomas Wyatt Weekly Chart
On the decliners chart are: Thomas Wyatt Plc, one of Nigeria’s oldest paper conversion and printing companies, dropping from N3.70 to N3.00, down 18.92%. NEM Insurance Plc fell from N32.50 to N26.60, shedding 18.15%, while Stanbic IBTC declined 15.39% from N111.10 to N94.00. Lasaco Assurance Plc lost 14.57%, falling from N4.05 to N3.46, and RT Briscoe Plc decreased from N3.95 to N3.40, down 13.92%.
Technical Analysis Outlook
The NGX ASI closed the week at 141,004.14 points, holding above the 140,000 psychological support zone, but momentum indicators suggest caution. The index slipped below its 20-day moving average (142,850 points), signaling short-term weakness, while still trading above the 200-day MA (128,500 points), maintaining a long-term bullish structure.
Relative Strength Index (RSI) fell to 44, indicating the market is leaning towards oversold territory but not yet at a strong reversal point. MACD shows bearish momentum, with the signal line above the MACD line, though Friday’s rebound suggests a potential for short-term recovery if buying pressure sustains.
Volume analysis shows declining participation midweek but strong accumulation on Friday, hinting that bargain hunters may be re-entering select counters, especially in the banking and industrial goods sectors. Key resistance is at 144,500–145,000 points, while immediate support sits at 140,000 points.
A break below 140,000 may expose the index to deeper losses towards 138,000, while a rebound above 142,000 could restore bullish sentiment.
Economic Trends
Nigeria’s inflation eased to 21.88% in July from 22.22% in June, marking a fourth monthly decline since last year’s rebasing that spiked it above 34%. Food inflation inched up to 22.74% from 21.97%, sustaining pressure on households.
The Central Bank held interest rates at 27.5% for the third straight time, with Governor Olayemi Cardoso stressing the priority of inflation control. Analysts expect that stable prices could aid economic recovery.
Meanwhile, the Debt Management Office will auction N200 billion in FGN bonds on August 25, 2025, with settlement on August 27. The offer includes N100 billion FGN JUL 2030 (5-year reopening) and N100 billion 17.95% FGN JUN 2032 (7-year reopening), priced at N1,000 per unit and ₦5,000 minimum subscription.
In July, the DMO raised N185.9 billion against over N300 billion in demand, with marginal yields dropping below coupon rates, reflecting easing inflation and a stable policy outlook.
Global Market and Oil
U.S. stocks rallied strongly on Friday after Federal Reserve Chair Jerome Powell hinted that the central bank could deliver a rate cut at its September policy meeting. His remarks, delivered at the Jackson Hole symposium, underscored the growing risks to the labor market, though he cautioned that inflationary pressures remain a concern.
The signal was enough to lift equities broadly, push bond yields lower, and weaken the dollar. On Wall Street, major indexes posted solid gains. The S&P 500 (SPX) climbed 1.5%, opening at 5,410.67 and closing higher at 5,493.12. The Nasdaq Composite (IXIC) advanced 1.7%, rising from an opening level of 17,860.12 to settle at 18,155.34. The Dow Jones Industrial Average (DJI) outperformed, surging 2.2% to close at a record 41,272.81 after starting the session at 40,393.55.
U.S. government bonds also gained. The policy-sensitive two-year Treasury yield fell nearly 10 basis points to 3.69%, while the benchmark 10-year yield eased 6 basis points to 4.27%. The foreign exchange market responded as well: the dollar index slid 0.89% to 97.73 after trading near 98.70 earlier in the day. The euro strengthened 0.97% to $1.1717, while the dollar dropped 1.1% against the Japanese yen to 146.74.
In Europe, equities followed Wall Street higher but at a slower pace. The region-wide STOXX 600 added 0.4%, climbing from 519.11 at the open to close at 521.16. German bonds also rallied, with the 10-year yield down 3 basis points to 2.72%.
Asian markets were lifted by strength in Chinese technology shares. The CSI 300 Index rose 2.1%, opening at 3,517.44 and closing at 3,592.28, after AI-related optimism boosted sentiment. Hong Kong’s Hang Seng Tech Index (HSTECH) gained 2.7%, advancing from 4,143.21 to 4,253.62.
Commodities also benefited from the softer dollar. Brent crude futures edged up 18 cents to close at $67.85 after opening at $67.67, while U.S. WTI crude added to $63.78 from $63.60. Gold extended its gains, climbing nearly 1% to finish at $3,370 per ounce, up from an opening level of $3,335 per ounce.
Sectorial Indexes Weekly Chart
NGX Banking Index Chart