The Nigerian Exchange Limited (NGX) saw a rise in equity turnover value to N158.29 billion in the first full trading week of October, despite a decline in trading volume and a 0.97 percent weekly drop in the NGX All-Share Index (ASI). The benchmark index closed the week at 248,363.55 points, while market capitalisation stood at N161.26 trillion. This performance comes as investors position themselves for third-quarter earnings releases and outstanding half-year results from banks.
According to Mobifoluwa Adesina, Research Analyst at CSL Stockbrokers Limited, investors locked in gains from the September rally but are anticipated to resume buying as market participants focus on third-quarter earnings releases and half-year financial results from banks. The analyst's outlook places corporate earnings at the centre of near-term market direction, particularly as investors assess whether listed companies can sustain earnings growth and justify their prevailing valuations.
The financial services sector remained dominant in market activity during the week, accounting for 2.005 billion shares valued at N82.924 billion in 94,483 deals. This sector represented 73.84 per cent of total equity turnover volume and 52.39 per cent of turnover value, highlighting the continued concentration of trading activity in financial stocks. The consumer goods industry and information and communications technology sector also recorded significant trading activity.
Access Holdings Plc, Zenith Bank Plc, and United Bank for Africa Plc were the three most actively traded equities by volume, accounting for 1.020 billion shares valued at N50.520 billion in 29,382 deals. This concentration of activity in these banking stocks reinforces the importance of financial-sector earnings to the market's immediate outlook, particularly as investors await outstanding half-year results and assess the implications of banks' financial performance for valuations.
Despite the correction, the market retained a year-to-date return of 59.60 per cent, underscoring the substantial gains accumulated by investors since the beginning of 2026. However, the broader market reflected increasing selling pressure, with 54 equities declining during the week, compared with 37 in the preceding week. The number of gainers fell to 24 from 44, while 68 equities closed unchanged.
Livestock Feeds Plc led the gainers with a 47.75 per cent appreciation, followed by Tripple Gee and Company Plc, which rose 32.62 per cent, and Guinea Insurance Plc, up 29.17 per cent. Sectoral performance was similarly weak, although the NGX Industrial Goods Index recorded a marginal gain of 0.02 per cent. The NGX Oil and Gas Index returned 124.92 per cent year-to-date, the NGX Premium Index gained 102.66 per cent, and the NGX Industrial Goods Index appreciated 83.96 per cent.
As investors enter the new trading week, attention is expected to shift towards corporate earnings, particularly results that could help distinguish fundamentally strong companies from stocks whose prices have risen ahead of underlying financial performance. The direction of the market will therefore depend increasingly on whether upcoming earnings announcements provide sufficient justification for prevailing valuations and encourage investors to resume buying after the recent round of profit-taking.
Key points
- Investors await third-quarter earnings releases across the NGX.
- The financial services sector dominated market activity during the week.
- The market retained a year-to-date return of 59.60 per cent.
