WEEKLY MARKET HIGHLIGHTS

Oct 6th – Oct 10th

Prodigy Group Asset Management

NIGERIA MARKET REVIEW

Equities Market Overview

The Nigerian equities market sustained its bullish momentum for the fifth consecutive week, driven by investor confidence in macroeconomic reforms, improved FX liquidity, and sector-specific catalysts. The NGX All Share Index (NGXASI) rose +2.73% WoW, closing at 146,988.04 points, while market capitalization expanded to ₦93.30 trillion, reflecting a ₦497.43 billion gain.

Investor sentiment was particularly strong in industrials, insurance, and oil & gas, with notable performances from DANGCEM, MANSARD, and SEPLAT. Market breadth improved to 1.29x, indicating a healthy ratio of gainers to losers, although trading activity moderated slightly.

Sector Performance

Sector Weekly YTD
Industrial+4.23%+48.15%
Insurance+3.69%+75.13%
Oil and Gas+2.90%-1.91%
Consumer Goods+0.83%+98.04%
Banking-0.41%+40.19%

Market Indicators

NGXASI146,988.04↑ +2.73%
Market Cap₦93.30 trn↑ +2.73%
Vol Traded2.26bn↓ -23.25%
Value Traded90.03bn↓ -0.23%

Top Gainers

SOVRENINS (+16.73%), OMATEK (+12.30%), MANSARD (+11.81%), CHAMS (+11.69%)

Top Losers

NEIMETH (-10.96%), UHOMREIT (-9.98%), MEYER (-9.85%), PZ (-8.51%)

Currency & Money Market

The Naira appreciated across both official and parallel markets, supported by improved FX liquidity and investor optimism following Nigeria's reclassification by FTSE Russell. The announcement of a planned $2.3 billion Eurobond issuance further stabilized sentiment.

Rates remained elevated, reflecting tight liquidity conditions despite FX inflows. The Central Bank's cautious stance on monetary easing continues to anchor short-term rates.

The Naira appreciated modestly in both the official and parallel markets, supported by improved FX liquidity and investor optimism surrounding Nigeria's Eurobond plans and FTSE Russell reclassification. However, system liquidity declined notably, likely due to aggressive OMO mop-ups and fiscal outflows. Despite this, short-term rates remained relatively stable, with only a marginal uptick in the O/N rate, suggesting the market absorbed the liquidity tightening without significant stress.

Indicator Value Change
Official FX Rate (NAFEM)₦1,455.17/USD↑ 0.72%
Parallel FX Rate₦1,485.00/USD↑ 0.34%
System Liquidity₦3.04 trillion↓ -15.08%
O/N Rate24.97%↑ 0.08%
OPR Rate24.50%— 0.00%

GLOBAL MARKET REVIEW

China: World Bank upgraded 2025 GDP forecast to 4.8%, driven by resilient exports and manufacturing. PMI trends suggest stabilization.

OPEC+: Announced a cautious production increase of 137,000 bpd, aiming to balance supply without triggering price volatility.

Kenya: Cut benchmark rate to 9.25%, signalling confidence in inflation control and a push for growth.

Sub-Saharan Africa: World Bank revised GDP growth to 3.8%, citing improved price stability and fiscal reforms in Nigeria, Ethiopia, and Côte d'Ivoire.

President Donald Trump reignited trade tensions by announcing 100% tariffs on all Chinese imports starting November 1, alongside export controls on critical software. This abrupt shift derailed expectations for a diplomatic breakthrough at the upcoming APEC summit.

  • NASDAQ: -3.56%
  • S&P 500: -2.7%
  • DOW: -2%
  • 10Y Treasury Yield: Dropped to 4.051%, confirming a flight to safety.

Key Economic Indicators

GDP Q2 20254.23%
Inflation (August)20.12%
Monetary Policy Rate27.00%
FX Reserves$42.58 billion
Brent Crude$63.77/barrel
Gold$3,985.31/oz

Fixed Income Market Yield

Tenor This Week Previous Week Change
1YR17.03%18.45%-1.42%
3YR16.12%16.54%-0.42%
5YR16.15%16.20%-0.05%
7YR15.92%16.16%-0.24%

Short-Term Money Market Rates

Tenor This Week Previous Week Change
1MTH16.09%16.14%-0.05%
3MTH17.58%17.54%+0.04%
6MTH17.68%18.08%-0.40%
9MTH17.56%18.16%-0.60%

Contact us

17th Floor, Elephant House, 214 Broad street, Marina, Lagos.

@ www.prodigygroup.com.ng, info@prodigygroup.com.ng

+234(091)6762-9178