According to the National Bureau of Statistics (NBS), Nigeria’s inflation rate slowed to 18.02% in September 2025, down from 22.12% in August, marking the sharpest single-month drop in over two years. In response, the CBN trimmed the MPR — the benchmark interest rate — to 27% from 27.5% in August, sparking optimism among investors.
Market analysts are projecting another rate cut at the next meeting of the Monetary Policy Committee (MPC), citing improved macroeconomic indicators and the need to stimulate growth.
Investors Gain ₦1.27tn
Data from the NGX showed that investors gained about ₦1.265 trillion last week, as the market capitalisation rose to ₦94.561 trillion on Friday, up from ₦93.296 trillion the previous week.
Similarly, the All-Share Index (ASI) advanced by 1.4% to close at 148,977.64 points, compared to 146,988.04 points recorded the previous week.
Analysts attributed the upbeat sentiment to positive investor reactions following the inflation report and positioning ahead of Q3 2025 earnings releases.
“The positive market response reflects renewed confidence in the macro environment and anticipation of solid corporate earnings,” one Lagos-based equities analyst said.
Sector Performance and Key Gainers
A breakdown of trading showed mixed activity levels — while trading volume rose by 5.9% week-on-week (W/W), trading value declined by 15.5% W/W.
Across sectors, performance was largely positive. The Industrial Goods Index gained 2.8%, the Insurance Index rose 2.6%, and the Consumer Goods Index advanced 1.9%. However, the Banking Index dipped slightly by 0.1%, while the Oil & Gas Index closed flat.
Among top-performing stocks, Dangote Cement appreciated by 4.4%, BUA Foods gained 3.2%, STANBIC IBTC rallied 8.3%, and WAPCO rose 4.3%.
As a result, the Month-to-Date (MtD) and Year-to-Date (YtD) returns improved to 4.4% and 44.7%, respectively.
Outlook
In their weekly outlook, analysts at Cordros Research said sentiment is expected to remain cautiously positive in the coming week as more listed companies release their third-quarter results.
“Next week, sentiment is expected to remain cautiously positive, supported by expectations of solid third-quarter earnings as a fresh wave of corporate results rolls in. Key releases on the radar include WAPCO and brewers such as International Breweries, Nigerian Breweries, and Guinness Nigeria,” the report noted.