NGX Market Wrap: Stocks Extend Gains as Investors Ride on Insurance and ETF Momentum
Nigeria’s equity market began the new week on a strong note, sustaining the positive sentiment that closed the previous quarter. The NGX All-Share Index (ASI) advanced by 0.86% to settle at 143,584.04 points, pushing the year-to-date (YTD) return to 40.36%. Market breadth remained firmly positive, as 52 stocks gained while 25 declined, reflecting a broad-based recovery mood among investors. However, overall turnover value declined by 23.58% to ₦12.99 billion, suggesting that the day’s rally was driven by more selective buying rather than broad-based volume inflows.
The upbeat performance was supported by renewed interest in the insurance sector, notable exchange-traded funds (ETFs), and a few select banking names. The Naira also appreciated by 0.34% against the U.S. dollar in the official FX window, reinforcing a stable macroeconomic backdrop that helped strengthen investor confidence.
Weekly Recap and Market Context
Last week’s impressive performance provided the foundation for Monday’s continuation rally. The market had previously seen major indices consolidate around record highs, driven largely by robust performances in the banking and energy sectors. Midweek, investors showed a preference for low-beta and high-dividend stocks, especially in insurance and real estate investment trusts (REITs), as part of a shift toward defensive positioning ahead of Q4 volatility.
Analysts expect a mix of profit-taking and rotational trades in the coming days as the Q4 2025 trading cycle gains momentum and investors position ahead of third-quarter (Q3) corporate earnings reports.
Sector Highlights and Market Trends
The day’s trading pattern revealed strong participation in the insurance, ETF, and banking segments. Insurance stocks such as Mansard Insurance, NEM Insurance, and Sovereign Trust Insurance extended their bullish momentum, each recording significant gains above their 15-day moving averages. Meanwhile, ETFs like NEWGOLD and GREENWETF attracted robust investor demand, indicating that some investors were positioning for hedges amid rising market uncertainty.
The NEWGOLD ETF emerged as the day’s top performer, soaring 12.23% to close at ₦57,799.00. The fund’s low volatility and strong positive momentum (as reflected by a bullish MACD reading) indicate growing investor interest in gold-backed assets as a defensive play.
Mansard Insurance followed closely with a 10% gain, extending its strong run from the previous week. The company’s improving fundamentals and attractive dividend profile have made it a favorite among both yield-seeking and momentum-focused traders.
Similarly, Seplat Energy advanced by 9.99%, reflecting ongoing investor optimism in the oil and gas sector. Greenwich ETF gained 9.99%, while Ellah Lakes rose 9.95% on volumes nearly three times higher than its 90-day average — a sign of institutional accumulation.
On the downside, International Energy Insurance fell by 8.42%, while McNichols Plc declined by 8.31%, both weighed down by weak technical readings and muted buying interest. Other notable laggards included Thomas Wyatt, Berger Paints, and ABC Transport, each losing between 5% and 7% as investors rotated out of small and mid-cap industrial stocks.
⚙️ Momentum Indicators and Technical Insights
From a technical perspective, bullish momentum dominated the trading session, with several stocks maintaining closes above their 15-day moving averages. Insurance names and selected banks such as Jaiz Bank, Wema Bank, and Fidelity Bank showed consistent upward momentum supported by strong volume flows. ETFs continued to outperform as investors sought diversification and inflation hedges.
Conversely, Berger Paints and AccessCorp fell below their short-term moving averages, signaling potential continuation of weakness. Both stocks also saw increased volume on down days, a sign of distribution pressure from institutional players. Despite these isolated pullbacks, the market remains broadly risk-on, with no major overbought conditions detected across key sectors.
Institutional Activity and Defensive Positioning
Trading data showed that institutional investors were the dominant players, accounting for 61% of total volumes and 84% of total market value. Key institutional trades were concentrated in GTCO, Zenith Bank, Aradel Holdings, Ellah Lakes, and AccessCorp, all of which saw strong block transactions.
In contrast, retail investors participated more actively in smaller-cap names such as Sterling Bank, MTNN, UBA, and AccessCorp. Stocks that attracted both institutional and retail flows — including Ellah Lakes and GTCO — are expected to exhibit short-term volatility and possible breakout potential.
High-yield, low-beta stocks such as NEM Insurance, Mansard, UPDC REIT, and Fidelity Bank continued to draw attention from defensive investors seeking a balance between income stability and moderate capital growth.
Market Outlook
Overall, the Nigerian stock market kicked off the week with a solid performance, characterized by broad strength across insurance, ETFs, and select banks, alongside sustained institutional participation. The current market structure suggests growing interest in defensive and yield-backed plays, supported by a stable naira and improving macro indicators.
As the week progresses, analysts expect a measured tone, with traders watching for profit-taking in overextended names and thematic rotations into undervalued sectors. The upcoming Q3 earnings season could serve as the next major catalyst, shaping sentiment and driving sector-specific opportunities.
Disclaimer: This market summary is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making investment decisions.
Nigeria’s equity market began the new week on a strong note, sustaining the positive sentiment that closed the previous quarter. The NGX All-Share Index (ASI) advanced by 0.86% to settle at 143,584.04 points, pushing the year-to-date (YTD) return to 40.36%. Market breadth remained firmly positive, as 52 stocks gained while 25 declined, reflecting a broad-based recovery mood among investors. However, overall turnover value declined by 23.58% to ₦12.99 billion, suggesting that the day’s rally was driven by more selective buying rather than broad-based volume inflows.
The upbeat performance was supported by renewed interest in the insurance sector, notable exchange-traded funds (ETFs), and a few select banking names. The Naira also appreciated by 0.34% against the U.S. dollar in the official FX window, reinforcing a stable macroeconomic backdrop that helped strengthen investor confidence.
Weekly Recap and Market Context
Last week’s impressive performance provided the foundation for Monday’s continuation rally. The market had previously seen major indices consolidate around record highs, driven largely by robust performances in the banking and energy sectors. Midweek, investors showed a preference for low-beta and high-dividend stocks, especially in insurance and real estate investment trusts (REITs), as part of a shift toward defensive positioning ahead of Q4 volatility.
Analysts expect a mix of profit-taking and rotational trades in the coming days as the Q4 2025 trading cycle gains momentum and investors position ahead of third-quarter (Q3) corporate earnings reports.
Sector Highlights and Market Trends
The day’s trading pattern revealed strong participation in the insurance, ETF, and banking segments. Insurance stocks such as Mansard Insurance, NEM Insurance, and Sovereign Trust Insurance extended their bullish momentum, each recording significant gains above their 15-day moving averages. Meanwhile, ETFs like NEWGOLD and GREENWETF attracted robust investor demand, indicating that some investors were positioning for hedges amid rising market uncertainty.
The NEWGOLD ETF emerged as the day’s top performer, soaring 12.23% to close at ₦57,799.00. The fund’s low volatility and strong positive momentum (as reflected by a bullish MACD reading) indicate growing investor interest in gold-backed assets as a defensive play.
Mansard Insurance followed closely with a 10% gain, extending its strong run from the previous week. The company’s improving fundamentals and attractive dividend profile have made it a favorite among both yield-seeking and momentum-focused traders.
Similarly, Seplat Energy advanced by 9.99%, reflecting ongoing investor optimism in the oil and gas sector. Greenwich ETF gained 9.99%, while Ellah Lakes rose 9.95% on volumes nearly three times higher than its 90-day average — a sign of institutional accumulation.
On the downside, International Energy Insurance fell by 8.42%, while McNichols Plc declined by 8.31%, both weighed down by weak technical readings and muted buying interest. Other notable laggards included Thomas Wyatt, Berger Paints, and ABC Transport, each losing between 5% and 7% as investors rotated out of small and mid-cap industrial stocks.
⚙️ Momentum Indicators and Technical Insights
From a technical perspective, bullish momentum dominated the trading session, with several stocks maintaining closes above their 15-day moving averages. Insurance names and selected banks such as Jaiz Bank, Wema Bank, and Fidelity Bank showed consistent upward momentum supported by strong volume flows. ETFs continued to outperform as investors sought diversification and inflation hedges.
Conversely, Berger Paints and AccessCorp fell below their short-term moving averages, signaling potential continuation of weakness. Both stocks also saw increased volume on down days, a sign of distribution pressure from institutional players. Despite these isolated pullbacks, the market remains broadly risk-on, with no major overbought conditions detected across key sectors.
Institutional Activity and Defensive Positioning
Trading data showed that institutional investors were the dominant players, accounting for 61% of total volumes and 84% of total market value. Key institutional trades were concentrated in GTCO, Zenith Bank, Aradel Holdings, Ellah Lakes, and AccessCorp, all of which saw strong block transactions.
In contrast, retail investors participated more actively in smaller-cap names such as Sterling Bank, MTNN, UBA, and AccessCorp. Stocks that attracted both institutional and retail flows — including Ellah Lakes and GTCO — are expected to exhibit short-term volatility and possible breakout potential.
High-yield, low-beta stocks such as NEM Insurance, Mansard, UPDC REIT, and Fidelity Bank continued to draw attention from defensive investors seeking a balance between income stability and moderate capital growth.
Market Outlook
Overall, the Nigerian stock market kicked off the week with a solid performance, characterized by broad strength across insurance, ETFs, and select banks, alongside sustained institutional participation. The current market structure suggests growing interest in defensive and yield-backed plays, supported by a stable naira and improving macro indicators.
As the week progresses, analysts expect a measured tone, with traders watching for profit-taking in overextended names and thematic rotations into undervalued sectors. The upcoming Q3 earnings season could serve as the next major catalyst, shaping sentiment and driving sector-specific opportunities.
Disclaimer: This market summary is for informational purposes only and does not constitute financial advice. Investors are advised to consult their financial advisors before making investment decisions.