The Nigerian stock market sustained a positive run last week, buoyed by renewed investor confidence ahead of the Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN) scheduled for September 22 and 23, 2025. Market watchers believe the outcome of the meeting, particularly decisions on the Monetary Policy Rate (MPR), will set the tone for investment directions in the coming weeks.
The Nigerian Exchange Limited (NGX) ended the week on a strong note, driven by robust demand in key blue-chip stocks. BUA Foods rose by 6.7%, Guinness Nigeria surged by an impressive 28.6%, while Dangote Cement and Nigerian Breweries recorded gains of 1.0% and 8.1% respectively. These movements lifted the All-Share Index (ASI) by 0.9% week-on-week, closing at 141,854.48 points.
Consequently, market performance metrics strengthened further. Month-to-Date (MtD) return improved to +1.1%, while Year-to-Date (YtD) return advanced to an impressive +37.8%, underscoring the resilience of the equities market despite concerns over macroeconomic headwinds. Analysts say the positive sentiment reflects investors’ anticipation of policy direction from the MPC and the search for value in fundamentally sound companies.
However, overall trading activity moderated compared to the previous week. Total turnover fell by 38.1% in volume and 38.3% in value, with 2.735 billion shares worth N85.197 billion exchanged in 127,284 deals. This was lower than the 3.188 billion shares valued at N99.685 billion traded in 132,711 deals the penultimate week. Analysts attribute the slowdown to cautious positioning by investors ahead of the CBN’s policy decisions.
Sectoral performance presented a mixed picture. The Consumer Goods Index led the pack, gaining 5.5% on the back of strong demand in food and beverage stocks, followed by the Oil & Gas Index, which appreciated by 2.8%. The Industrial Goods Index also inched up by 0.1%. On the flip side, the Insurance Index declined sharply by 4.7%, while the Banking Index slipped by 2.6%, reflecting weaker sentiment in financial stocks.
By volume, the Financial Services Industry remained the most active, accounting for 1.909 billion shares valued at N37.834 billion across 56,026 deals. This represented 69.79% of total equity turnover volume and 44.41% of total market value. The ICT sector followed with 184.870 million shares worth N6.189 billion in 12,893 deals, while the Services sector took third place with 176.506 million shares valued at N813.252 million traded in 6,011 deals.
Market analysts noted that the gains in the past week demonstrate investors’ continued appetite for select equities despite prevailing uncertainties. “In the coming week, we expect the outcome of the MPC meeting to shape market activities, determining the magnitude of investors’ appetite for risk assets,” analysts at Cordros Research said. They added that any adjustment in the MPR will significantly influence capital flows and portfolio rebalancing in the short term.
Looking ahead, stakeholders remain cautious yet optimistic. If the MPC maintains its current tightening stance, analysts expect short-term pressure on equities. However, a dovish move could trigger a renewed rally, especially in interest-sensitive sectors. Until then, investors are expected to continue cherry-picking fundamentally strong stocks while monitoring macroeconomic signals for clearer market direction.
