NGX Records Margin Decline To Formed Weekly Hammer Candlestick Amid Resisting Further Downtrend

I t was a bearish week of two trading sessions of up market and three trading days of down market, as the composite index NGXASI rebounded on Friday due to buying interest on Dangote Cement and seeming reactions to impressive Q3 earnings reports that were made available to the market ahead of next week statutory deadline for quarterly earnings submission. The benchmark NGX All-Share Index declined by 0.13% to close at 247,222.27 points, while market capitalisation stood at N160.519 trillion. Despite the weekly decline, the market maintained a year-to-date return of 58.87%.

Trading activity increased during the week, with investors exchanging 2.024 billion shares valued at N110.773 billion in 173,113 deals, compared with 1.659 billion shares worth N98.088 billion in 184,632 deals in the previous week. This represented increases of approximately 22.0% in volume and 12.9% in value, although the number of deals fell by 6.3%. The Financial Services sector led market activity, recording 1.111 billion shares worth N53.908 billion in 81,787 deals. The sector accounted for 54.89% of total equity turnover volume and 48.66% of traded value. Consumer Goods ranked second, with 394.039 million shares valued at N9.811 billion in 17,912 deals, while Agriculture placed third with 147.170 million shares worth N2.821 billion in 7,462 deals.

The most active traded stocks by volume during the period under review are Multitrex Integrated Foods Plc, Zenith Bank Plc and Livestock Feeds Plc. Altogether they recorded 521.565 million shares valued at N19.093 billion in 16,487 deals, representing 25.76% of total turnover volume and 17.24% of traded value.

Market performance remained mixed across the week, as trading opened on a negative note to extend the previous session loss position with the index closing lower by 0.91% at 245,278.34 points, as market capitalisation fell by N1.47 trillion to N159.26 trillion. Market breadth was negative, with 40 losers against 15 gainers. MULTITREX advanced 10% to lead gainers, while VITAFOAM fell 10%. Trading volume dropped 10.10% to 257.73 million shares worth N13.07 billion in 32,032 deals. UBA led volume, while ZENITHBANK recorded the highest transaction value at N2.09 billion.

The market recovered on Tuesday, as the ASI gained 0.26% to close at 245,911.13 points, adding 632.79 points. Market capitalisation increased by N410.86 billion to N159.67 trillion, while the year-todate return rose to 58.03%. Market breadth improved to 28 gainers against 21 losers. AUSTINLAZ led the advancers, while LIVESTOCK recorded the biggest loss. Trading volume reached 348.75 million shares valued at N25.84 billion in 32,639 deals. UBA led volume, while ARADEL topped transaction value at N5.11 billion.

Selling pressure returned on Wednesday, October 21, pushing the ASI down 0.32% to 245,116.49 points. Market capitalisation declined by N515.95 billion, while the year-to-date return eased to 57.52%. CWG recorded the steepest loss, falling 9.98%, while LIVINGTRUST led gainers. Trading volume rose 1.54% to 354.13 million shares worth N23.60 billion across 32,639 deals. ZENITHBANK led trading volume with 48.21 million shares and transaction value at N5.90 billion.

The bearish trend continued on Thursday, although losses moderated. The ASI fell 0.07% to 244,956.94 points, reducing market capitalisation by N103.60 billion and bringing the year-to-date return to 57.41%. Market breadth remained negative, with 22 decliners against 16 advancers. AVACAP led gainers, while THOMASWY recorded the steepest decline. Trading volume increased 1.87% to 360.75 million shares valued at N20.32 billion in 31,401 deals. LIVESTOCK led volume with 40.97 million shares, while ARADEL recorded the highest transaction value at N4.34 billion.

The market staged a strong recovery on Friday, as the ASI advanced 0.92% to close at 247,222.27 points. Market capitalisation rose by N1.47 trillion, while the year-to-date return improved to 58.87%. DANGCEM and FIRSTHOLDCO gained 10% each, while FIDELITYBK advanced 9.09%. However, market breadth remained negative, with 25 decliners against 23 gainers, as LIVESTOCK recorded the steepest loss. Trading volume surged 69.56% to 611.68 million shares worth N23.14 billion across 33,585 deals. LIVESTOCK led volume with 46.84 million shares, while ARADEL topped transaction value at N4.20 billion.

Despite Friday’s recovery, market breadth weakened significantly over the week. Only 20 equities appreciated in price, compared with 50 in the previous week, while declining stocks increased to 55 from 30. Meanwhile, 71 equities closed unchanged, up from 66 previously, indicating that selling pressure affected a broader section of the market. Sectoral performance was largely negative, although some indices recorded gains. The NGX Industrial Goods Index advanced 1.95%, the NGX Premium Index rose 0.80%, the NGX Consumer Goods Index gained 0.04%, the NGX Growth Index increased 0.04%, and the NGX Pension Broad Index appreciated 0.03%. The NGX Sovereign Bond Index remained unchanged, while all other indices closed lower.

Overall, the market recorded higher weekly turnover but remained under pressure as declining equities outnumbered gainers. Friday’s rebound helped recover part of the earlier losses, although the negative breadth and weakness across most sectoral indices pointed to cautious investor sentiment.

Week-to-date, the All-Share Index has lost 0.13%, NGX 30 is down by 0.01%, the Banking Index has decreased by 0.67%, the Pension Index decreased by 0.71%, the Insurance Index declined by 2.79%, the Consumer Goods Index decreased by 0.55%. However, the Oil and Gas Index recorded a negative return of 2.55%. Year-to-date, the All-Share Index has gained 58.87%, NGX 30 is up by 60.42%, the Banking Index has increased by 65.94%, the Pension Index increased by 79.88%, the Insurance Index declined by 11.76%, the Consumer Goods Index increase by 0.99%. However, the Oil and Gas Index recorded a positive return of 126.04%.

ABC Transport Plc led the gainers, rising by N1.25 or 20.66% from an opening price of N6.05 to close at N7.30. AVA Capital Plc gained N1.10 or 17.74%, advancing from N6.20 to N7.30, while Caverton Offshore Support Group Plc appreciated by N0.70 or 17.07%, moving from N4.10 to N4.80. Fidelity Bank Plc rose by N2.95 or 14.01%, from N21.05 to N24.00, while Multi-Trex Integrated Foods Plc gained N0.06 or 10.00%, closing at N0.66 from N0.60.

On the losers’ chart, UPDC Real Estate Investment Trust recorded the steepest decline, shedding N3.65 or 17.26% to close at N17.50 from N21.15. Omatek Ventures Plc fell by N0.20 or 12.50%, declining from N1.60 to N1.40, while University Press Plc lost N0.60 or 12.12%, closing at N4.35 from N4.95. Regency Alliance Insurance Plc declined by N0.09 or 11.25%, from N0.80 to N0.71, while Nigerian Exchange Group Plc shed N17.50 or 10.29%, falling from N170.00 to N152.50.

The Nigerian Exchange recorded a smaller weekly loss of 0.13% in the week ended October 23, 2026, compared with a 0.33% decline in the previous week. The All-Share Index closed at 247,222.27 points, down from 247,539.73 points, while market capitalisation fell from N160.725 trillion to N160.519 trillion. Year-to-date return also eased from 59.07% to 58.87%, reflecting a slight moderation in the market’s overall performance.

Trading activity improved, with total turnover rising 22% to 2.024 billion shares valued at N110.773 billion, compared with 1.659 billion shares worth N98.088 billion in the previous week. However, the number of deals declined by 6.3% to 173,113, suggesting that higher trading volume and value were not accompanied by increased transaction frequency.

The Financial Services sector remained the dominant contributor, accounting for 54.89% of total volume and 48.66% of traded value. The Consumer Goods and Agriculture sectors followed in trading activity. Among the sectoral indices, Industrial Goods led with a 1.95% gain, while the Premium and Consumer Goods indices also recorded modest advances. Most other indices closed lower.

Market breadth weakened significantly, with 20 stocks gaining against 55 decliners, compared with 50 gainers and 30 decliners in the previous week. This indicates that selling pressure spread across more stocks despite the improvement in turnover. The market also experienced mixed daily movements, with Friday’s 0.92% rebound helping to limit the weekly decline after losses earlier in the week.

Overall, the market showed improved trading activity and a smaller weekly decline, but weak breadth suggests that investor sentiment remains cautious. Sustained buying interest, stronger market breadth and continued gains in the benchmark index will be important in confirming a more durable recovery in the coming week.

The Nigerian equities market ended the week on a mildly bearish note, with the All-Share Index (ASI) declining 0.13% to 247,222.27 points despite a strong 0.92% rebound on Friday. The late-week recovery suggests renewed demand for selected large-cap stocks, although the index’s inability to sustain an upward trajectory throughout the week indicates that selling pressure remains present.

From a index action perspective, the ASI’s recovery from its midweek weakness points to buying interest around lower trading levels. However, the rebound requires confirmation through follow-through gains and broader market participation before it can be interpreted as the beginning of a sustained bullish reversal. Failure to maintain the recovery could expose the market to renewed selling pressure and a possible retest of recent lows.

Market breadth remains a significant concern. With 55 decliners against 20 advancers for the week, selling pressure was more widespread than buying interest. This negative breadth suggests that Friday’s advance may have been driven largely by selected heavyweight stocks rather than a broad-based improvement in investor sentiment. A sustained bullish trend would require an increase in advancing stocks alongside continued gains in the ASI.

Trading activity provided a mixed signal. Weekly turnover rose to 2.024 billion shares valued at N110.773 billion, compared with 1.659 billion shares worth N98.088 billion in the preceding week. However, the decline in the number of deals from 184,632 to 173,113 suggests that the increase in volume and value did not translate into wider market participation. Further analysis of price movement alongside turnover will be important in determining whether institutional accumulation or short-term repositioning is driving activity.

The short-term outlook remains cautiously neutral to bullish, supported by Friday’s recovery but constrained by weak market breadth and the ASI’s modest weekly decline. The immediate technical priority is whether the index can sustain its upward movement and build on Friday’s gains. Consecutive positive sessions, accompanied by stronger turnover and an improving advance-decline ratio, would provide more convincing evidence of renewed bullish momentum.

Conversely, a failure to extend the rebound could signal that the latest advance was a temporary recovery within a broader consolidation phase. A renewed decline below recent trading lows would strengthen the bearish case and suggest that sellers retain control of the market. Investors should therefore monitor the index’s reaction around recent support and resistance zones rather than treating a single positive session as confirmation of a trend reversal.

Market breadth, turnover and the performance of large-cap stocks will remain key indicators in the coming week. A rising ASI

Sectoral performance also reflected uneven market sentiment. The Industrial Goods Index gained 1.95%, while the Premium Index advanced 0.80%. Consumer Goods and Growth indices recorded marginal gains of 0.04% each, while several other indices closed lower. This divergence highlights the importance of sector and stock selection as investors position themselves around areas of relative strength.

NGX ASI: Nigeria’s All-Share Index The NGX ASI shed 0.13% to close at 247,222.27 basis points. Amid strong selling pressure this week, MACD’s bearish momentum improved, suggesting a continued downtrend. In line with this performance, the index’s liquidity declined. However, its relative strength remained solid, signalling sustained investor interest. Based on the benchmark indices’ performance this week, investors should watch for improved performance next week.

The banking index shed 0.67% and closed at 2,515.47 bps. During the week, the index experienced strong bearish momentum. However, the market bottomed out, offering strong support at 2,441 basis points after the index experienced low selling pressure on Thursday. Due to the strong bearish momentum, MACD’s bearish signal strengthened. However, the stock’s liquidity and relative strength remained high and solid. This performance suggests that mild profit-taking prevailed in the banking sector. Banking sector weekly performance: top gainers and losers Gainers: FIDELITY (+14.01%), FIRSTHOLD (+4.42%) Losers: ETI (-6.16%), UBA (-5.47%), ACCESSCORP (-5.79%), ZENITH (-4.05%), WEMABANK (-3.23%)

NGXCSMG: Consumer Goods Sector Index The consumer goods index rose 0.04% to close at 7,242.31 bps. Although the index experienced strong bearish momentum, the market bulls offered strong support to end the week. In line with this performance, the bullish volume closed moderately strong with high liquidity and relative strength. The index closed with a doji candlestick pattern on the weekly chart, signalling a potential trend reversal.

Consumer goods sector weekly performance: top gainers and losers

Gainers: ETRANZA (+8.57%), PZ (+6.90%), UNILEVER (+6.34%)

Losers: NPFMCRF (-10.87%), ROYALEX (-8.33%)

The industrial index rose 1.95% to close at 10,646.68 basis points. This performance sustained the index recovery phase within the 0.382 Fibonacci level. In line with this performance, the index’s bullish volume closed strongly above its moving average. Also, its liquidity and relative strength improved, attracting investment opportunities. Lastly, MACD sustained its divergence signal, preparing a potential trend reversal

Industrial sector weekly performance: top gainers and losers

Gainers: DNMEYER (+9.72%), DANGCEM (+4.15%), CAP (+1.38%) Losers: TRIPPLE (-8.74%), CUTIX (-3.40%), HBMNG (-1.41%)

The oil and gas index lost 2.55%, closing at 6,035.77 bps. During the week, the sector consolidated after displaying signs of recovery above its support level. However, the selling pressure increased to end the week in a strong loss. In line with this performance, MACD initiated its bullish divergence signal, preparing for a trend reversal. The index’s liquidity also declined, but its relative strength remained solid. This performance suggests sustained investor interest amid this corrective market.

The insurance sector fell 2.79% to close at 1,049.43 bps. This performance strengthened the index’s markdown face as it approached its 52-week low. Notably, the index experienced low selling pressure to end the week. In line with this performance, the market’s liquidity and relative strength declined. Thus, investors should watch for a potential recovery phase next week to determine the index’s outlook.

This week’s performance has helped shape the NGX outlook for the following week. Despite the bearish momentum, the benchmark indices closed the week with strong bullish momentum. This performance suggests a potential recovery phase amid Q3 results releases and interim dividend proposals.

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