The Nigerian stock market maintained its upward trajectory last week, driven by strong investor interest in key stocks, as attention turns to the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) meeting scheduled for September 22 and 23, 2025. Analysts suggest that the meeting’s outcome, particularly decisions on the Monetary Policy Rate (MPR), will play a pivotal role in shaping investor sentiment and market direction.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) climbed 0.9% week-on-week, closing at 141,854.48 points. This performance boosted the Month-to-Date (MtD) return to 1.1% and the Year-to-Date (YtD) return to an impressive 37.8%. The rally was fueled by significant gains in major stocks, including Guinness Nigeria, which surged by 28.6%, BUA Foods with a 6.7% increase, Nigerian Breweries up 8.1%, and Dangote Cement gaining 1.0%.
Mixed Sector Performance
Sectoral performance showed varied results. The Consumer Goods Index led with a 5.5% rise, followed by the Oil & Gas Index, which gained 2.8%, and the Industrial Goods Index, up by 0.1%. However, the Insurance Index fell by 4.7%, and the Banking Index dropped by 2.6%, reflecting cautious sentiment in these sectors.
Trading activity saw a decline, with total turnover dropping to 2.735 billion shares valued at N85.197 billion across 127,284 deals, compared to 3.188 billion shares worth N99.685 billion in 132,711 deals the previous week. This represents a 38.1% decrease in volume and a 38.3% drop in value week-on-week.
The Financial Services Industry dominated trading, accounting for 69.79% of total equity turnover volume with 1.909 billion shares valued at N37.834 billion in 56,026 deals. The ICT Industry followed with 184.870 million shares worth N6.189 billion in 12,893 deals, while the Services Industry recorded 176.506 million shares valued at N813.252 million in 6,011 deals.
Outlook Tied to MPC Decisions
Market analysts at Cordros Research emphasized that the MPC meeting’s outcomes will significantly influence investor behavior in the coming week. “We anticipate that the decisions on the Monetary Policy Rate will determine the extent of investors’ appetite for risk assets,” they noted. The market’s positive momentum suggests optimism, but uncertainties surrounding the MPC’s policy direction could sway future trading patterns.
As investors await the CBN’s next moves, the Nigerian stock market remains a focal point for both local and international observers, with its performance closely tied to broader economic policy signals.
