|
Getting your Trinity Audio player ready...
|
Stocks trading on the Nigerian Exchange Limited (NGX) closed October 2025 on a bullish note. Though rising by 8 percent, the market’s gain in October was moderated by investors who reduced their exposure in banking stocks.
October performance weighed down by banking stocks…
In ten months to October, the stock market All Share Index recorded a positive return of 49.74 percent while the NGX Banking Index underperformed the market with a negative return of 3.15 percent.
Designed to provide an investable benchmark to capture the performance of the banking sector, NGX Banking Index comprises the most capitalised and liquid companies in banking.
“The performance during the month (October) was largely weighed down by the banking sector, as investors reduced exposure following the release of nine months earnings. Among the tier-1 names, Zenith Bank recorded the steepest decline (- 8.70 percent month-on-month), followed by GTCO (-4.69 percent), and Access Holdings (-4.68 percent),” said Lagos-based Vetiva Research analysts.
While NGX Banking Index was the only laggard in October, other key sectoral indices closed the review month in green. NGX Consumer Goods Index (+4.85 percent), NGX Industrial Index (+17.50 percent), NGX Insurance Index (+3.37 percent), and NGX Oil and Gas Index (+15.45 percent).
Stakeholders comment…
Temi Popoola, GMD/CEO of Nigerian Exchange Group (NGX Group), stated, “The consistent market performance we are witnessing reflects a renewed sense of confidence in Nigeria’s economic direction.
Read also: Stocks shed over N240bn as investors reprice naira assets on Trump’s threat
“The combination of strong corporate earnings, improving liquidity conditions, and credible policy actions has provided a more predictable environment for investors. At NGX Group, we remain focused on deepening the ecosystem’s resilience and positioning our market as a platform for sustainable long-term growth,” Popoola said.
Jude Chiemeka, CEO, Nigerian Exchange Limited (NGX) noted, “The October rally highlights the depth of investor engagement across sectors. Our priority remains to enhance market efficiency and ensure the Exchange remains a credible reflection of Nigeria’s economic resilience.”
Behold the drivers of key sectors performance …
The market’s advance was broad-based, with most sectors closing in positive territory. The Industrial Goods sector was the standout performer, soaring 17.5percent to 5,955.8 points. Heavyweights like Dangote Cement (+25.69percent), BUA Cement (+12.5percent), and Lafarge Africa (+11.91percent) led the charge.
The Oil & Gas index recorded its strongest monthly gain of the year, rising 15.45percent. The rally was fuelled by firm crude oil prices and robust company earnings, with Aradel Holdings (+27.15percent) and Seplat Energy (+10percent) as key drivers. Meanwhile, the Consumer Goods sector extended its winning streak to a seventh consecutive month, advancing 4.85percent. BUA Foods, the bourse’s largest listed company, rose 9.97percent, while PZ Cussons Nigeria (+20.29percent) and Vitafoam Nigeria (+17.79percent) also posted significant gains.
The Insurance index climbed 3.37percent, supported by strong performances from Sovereign Trust Insurance (+30percent) and AIICO Insurance (+11.71percent). In a contrasting move, the Banking Index was the sole laggard, dipping 3.15percent as sell-offs in major tier-one lenders outweighed gains from others like Wema Bank (+20.29percent).
October as second-best performing month…
The NGX All-Share Index rose from 142,713.1 points at the start of the month to 154,126.4 points at the close, with more than 12 billion shares exchanged. October ranked as the second-best performing month of the year, behind July’s 16.57 per cent surge.
The market has returned 49.74 percent year-to-date, with the second half alone contributing 28.46 percent. Except for a modest 1.99 percent pullback in March, every other month in 2025 has ended in positive territory, demonstrating the market’s resilience amid shifting global and domestic dynamics.
