NGX Market Summary — Monday, October 27, 2025
The Nigerian Exchange (NGX) began the week with a cautious tone as the All Share Index (ASI) slipped slightly by 0.10%, closing at 155,645.05 points. Despite the minor decline, the market’s overall Year-to-Date (YTD) return remains impressive at 50.70%, showing that investors are still sitting on strong cumulative gains for the year.
However, today’s session revealed signs of cooling momentum — a reflection of investor restraint following last week’s rally.
Market Overview
Trading activity slowed notably across the board.
• The total trading volume fell sharply to 414.48 million units, marking a 65% drop from the previous session.
• The market turnover also tumbled by 37.90%, closing at ₦16.99 billion.
This decline signals a dip in risk appetite, possibly due to profit-taking after recent highs.
Market breadth leaned bearish, with 38 decliners outpacing 30 gainers, translating to a breadth ratio of 0.79x.
Interestingly, the Naira strengthened slightly by 0.16% against the U.S. dollar, helping maintain mild investor confidence despite the market’s subdued tone.
Top Gainers and Bullish Highlights
The top-performing stocks of the day were led by ARADEL Holdings Plc (+10.00%), which saw heavy institutional inflows totaling over ₦5.3 billion — a strong signal of smart money confidence.
Other strong gainers included:
• NEM Insurance (+9.67%), showing consistent momentum both short and long term.
• ASO Savings (+9.09%), with a remarkable 933% volume surge above its 90-day average — confirming massive buying interest.
• Eterna Plc (+8.75%), supported by a bullish technical crossover (15-day MA above 50-day MA).
• CHAMS (+7.59%), showing solid MACD and RSI readings that confirm upward momentum.
However, traders are advised to be cautious with overbought stocks like ASOSAVINGS and ARADEL, whose RSI readings above 80 indicate that short-term pullbacks could occur soon.
Top Losers and Bearish Signals
The bears made their presence felt in select sectors, with several stocks recording steep declines:
• DEAP Capital Management (-9.71%) led the losers, crossing below its 15-day MA and confirming bearish momentum.
• Champion Breweries (-9.64%) also posted significant losses despite earlier signs of resilience.
• Red Star Express (-8.64%), WAPIC (-6.45%), and Universal Insurance (-5.98%) followed, reinforcing selling pressure across insurance and logistics sectors.
These stocks currently display weak RSI and negative MACD values, suggesting that further downside may be likely in the short term.
Sector Performance Insights
• Financial Sector: Activity was mixed. While ASO Savings showed unusual volume spikes, ACCESSCORP and ZENITHBANK faced mild selling pressure due to profit-taking.
• Insurance Sector: Mixed signals — NEM Insurance surged impressively, but WAPIC and Universal Insurance weakened.
• Petroleum Sector: Firmly bullish, driven by strong performances from Eterna and ARADEL, backed by solid technical trends.
• Beverages: Weak sentiment dominated, with Champion Breweries sinking nearly 10%.
• Diversified Industrials: Retail interest remained moderate, led by UACN, which gained modestly.
Institutional Activity
Institutions were very active behind the scenes, accounting for over 88% of the total value traded, but just 38% of trade count, showing that big players executed large block trades while retail investors stayed cautious.
Key institutional trades included:
• ZENITHBANK, which made up 20% of all institutional value traded, even though it slipped -2.53%, indicating possible portfolio repositioning.
• ARADEL, where institutional inflows dwarfed retail trades (₦5.3B vs ₦280M).
• ACCESSCORP and FIRSTHOLDCO, which also saw strong institutional clustering — often a precursor to large directional moves.
YTD and Weekly Insights
• The Initiates Plc (TIP) remains the biggest YTD performer with a +468% gain, though it fell -3.4% this week due to profit-taking.
• NEM Insurance (+174%), Eunisell (+216%), and Wema Bank (+141%) continue to show sustained momentum both short and long term.
• On the losing side, OANDO (-36%) and John Holt (-16%) remain among the weakest YTD names.
⚙️ Technical and Momentum Takeaways
• Bullish setups: ETERNA, CHAMS, ARADEL, and ASOSAVINGS all trade above their 15-day moving averages, backed by strong RSI and MACD readings.
• Bearish setups: DEAPCAP, CHAMPION, and FIRSTHOLDCO have fallen below their short-term averages, confirming near-term weakness.
• Contrarian Watch: CHAMPION and DEAPCAP may attract contrarian traders if sell pressure eases, as both are nearing short-term support levels.
Dividend & Defensive Opportunities
Investors seeking stability amid volatility might look to CORNERSTONE Insurance (5.28% yield) and LIVESTOCK Feeds (2.94% yield) — both have low beta and bullish momentum, offering income with reduced volatility.
ETERNA also remains appealing as a high-beta stock with strong bullish indicators, suitable for momentum-driven investors.
Trader Insights and Recommendations
• Momentum traders: Consider partial profit-taking on overheated stocks like ARADEL and ASOSAVINGS.
• Value seekers: Watch DEAPCAP and CHAMPION for potential rebound entries — but only after RSI and MACD show recovery signals.
• Income investors: Focus on CORNERST and LIVESTOCK for defensive plays with sustainable dividends.
• Sector rotation strategy: Keep an eye on Petroleum and Insurance — both are showing sector-wide triggers for the next rally.
• Caution: The drop in turnover and broader market weakness hint that the current correction phase may not be over yet. Tighten stops and stay nimble.
Final Outlook
The NGX started the week on a consolidation note, with reduced participation and selective buying. The current setup suggests a pause phase rather than a reversal — institutional investors appear to be rotating positions, while retail investors are exercising restraint.
If volumes pick up midweek and breadth improves, we could see a renewed push upward, particularly in high-momentum sectors like Petroleum and Insurance.
But for now, prudence and tactical positioning remain key.
The Nigerian Exchange (NGX) began the week with a cautious tone as the All Share Index (ASI) slipped slightly by 0.10%, closing at 155,645.05 points. Despite the minor decline, the market’s overall Year-to-Date (YTD) return remains impressive at 50.70%, showing that investors are still sitting on strong cumulative gains for the year.
However, today’s session revealed signs of cooling momentum — a reflection of investor restraint following last week’s rally.
Market Overview
Trading activity slowed notably across the board.
• The total trading volume fell sharply to 414.48 million units, marking a 65% drop from the previous session.
• The market turnover also tumbled by 37.90%, closing at ₦16.99 billion.
This decline signals a dip in risk appetite, possibly due to profit-taking after recent highs.
Market breadth leaned bearish, with 38 decliners outpacing 30 gainers, translating to a breadth ratio of 0.79x.
Interestingly, the Naira strengthened slightly by 0.16% against the U.S. dollar, helping maintain mild investor confidence despite the market’s subdued tone.
Top Gainers and Bullish Highlights
The top-performing stocks of the day were led by ARADEL Holdings Plc (+10.00%), which saw heavy institutional inflows totaling over ₦5.3 billion — a strong signal of smart money confidence.
Other strong gainers included:
• NEM Insurance (+9.67%), showing consistent momentum both short and long term.
• ASO Savings (+9.09%), with a remarkable 933% volume surge above its 90-day average — confirming massive buying interest.
• Eterna Plc (+8.75%), supported by a bullish technical crossover (15-day MA above 50-day MA).
• CHAMS (+7.59%), showing solid MACD and RSI readings that confirm upward momentum.
However, traders are advised to be cautious with overbought stocks like ASOSAVINGS and ARADEL, whose RSI readings above 80 indicate that short-term pullbacks could occur soon.
Top Losers and Bearish Signals
The bears made their presence felt in select sectors, with several stocks recording steep declines:
• DEAP Capital Management (-9.71%) led the losers, crossing below its 15-day MA and confirming bearish momentum.
• Champion Breweries (-9.64%) also posted significant losses despite earlier signs of resilience.
• Red Star Express (-8.64%), WAPIC (-6.45%), and Universal Insurance (-5.98%) followed, reinforcing selling pressure across insurance and logistics sectors.
These stocks currently display weak RSI and negative MACD values, suggesting that further downside may be likely in the short term.
Sector Performance Insights
• Financial Sector: Activity was mixed. While ASO Savings showed unusual volume spikes, ACCESSCORP and ZENITHBANK faced mild selling pressure due to profit-taking.
• Insurance Sector: Mixed signals — NEM Insurance surged impressively, but WAPIC and Universal Insurance weakened.
• Petroleum Sector: Firmly bullish, driven by strong performances from Eterna and ARADEL, backed by solid technical trends.
• Beverages: Weak sentiment dominated, with Champion Breweries sinking nearly 10%.
• Diversified Industrials: Retail interest remained moderate, led by UACN, which gained modestly.
Institutional Activity
Institutions were very active behind the scenes, accounting for over 88% of the total value traded, but just 38% of trade count, showing that big players executed large block trades while retail investors stayed cautious.
Key institutional trades included:
• ZENITHBANK, which made up 20% of all institutional value traded, even though it slipped -2.53%, indicating possible portfolio repositioning.
• ARADEL, where institutional inflows dwarfed retail trades (₦5.3B vs ₦280M).
• ACCESSCORP and FIRSTHOLDCO, which also saw strong institutional clustering — often a precursor to large directional moves.
YTD and Weekly Insights
• The Initiates Plc (TIP) remains the biggest YTD performer with a +468% gain, though it fell -3.4% this week due to profit-taking.
• NEM Insurance (+174%), Eunisell (+216%), and Wema Bank (+141%) continue to show sustained momentum both short and long term.
• On the losing side, OANDO (-36%) and John Holt (-16%) remain among the weakest YTD names.
⚙️ Technical and Momentum Takeaways
• Bullish setups: ETERNA, CHAMS, ARADEL, and ASOSAVINGS all trade above their 15-day moving averages, backed by strong RSI and MACD readings.
• Bearish setups: DEAPCAP, CHAMPION, and FIRSTHOLDCO have fallen below their short-term averages, confirming near-term weakness.
• Contrarian Watch: CHAMPION and DEAPCAP may attract contrarian traders if sell pressure eases, as both are nearing short-term support levels.
Dividend & Defensive Opportunities
Investors seeking stability amid volatility might look to CORNERSTONE Insurance (5.28% yield) and LIVESTOCK Feeds (2.94% yield) — both have low beta and bullish momentum, offering income with reduced volatility.
ETERNA also remains appealing as a high-beta stock with strong bullish indicators, suitable for momentum-driven investors.
Trader Insights and Recommendations
• Momentum traders: Consider partial profit-taking on overheated stocks like ARADEL and ASOSAVINGS.
• Value seekers: Watch DEAPCAP and CHAMPION for potential rebound entries — but only after RSI and MACD show recovery signals.
• Income investors: Focus on CORNERST and LIVESTOCK for defensive plays with sustainable dividends.
• Sector rotation strategy: Keep an eye on Petroleum and Insurance — both are showing sector-wide triggers for the next rally.
• Caution: The drop in turnover and broader market weakness hint that the current correction phase may not be over yet. Tighten stops and stay nimble.
Final Outlook
The NGX started the week on a consolidation note, with reduced participation and selective buying. The current setup suggests a pause phase rather than a reversal — institutional investors appear to be rotating positions, while retail investors are exercising restraint.
If volumes pick up midweek and breadth improves, we could see a renewed push upward, particularly in high-momentum sectors like Petroleum and Insurance.
But for now, prudence and tactical positioning remain key.