MORGANABLE BUSINESS / MARKET
Nigeria’s stock market extended its losing streak in the week ended October 16, even as the country’s inflation rate fell for the fourth consecutive month.
Akure —
Nigeria’s stock market extended its losing streak in the week ended October 16, even as the country’s inflation rate fell for the fourth consecutive month.
The Nigerian Exchange Limited (NGX) All-Share Index closed at 247,539.73 points, down 0.33 per cent from 248,363.55 points a week earlier. The decline showed that easing inflation has not yet restored confidence across the equity market.
Investors also saw the market’s total capitalisation fall to about ₦160.73 trillion from the previous week’s level. Reports put the weekly loss in market value at roughly ₦823.82 billion. This decline came despite gains across several other smaller listed companies.
The market’s decline came after the National Bureau of Statistics reported that headline inflation eased to 14.63 per cent in September from 15.39 per cent in August.
This marked the fourth consecutive monthly moderation and offered some relief after a period of rising living costs. However, the lower rate did not mean that prices had fallen. Instead, prices continued to rise, but at a slower annual pace.
INFLATION EASES, BUT PRESSURES REMAIN
The September figures showed that inflation remained a challenge for households and businesses. Food inflation stood at 19.59 per cent year-on-year, slightly above the 19.57 per cent recorded in August.
Yet it was lower than the 20.16 per cent reported in September 2025. These figures show why many consumers may not feel much relief despite the decline in the headline rate.
For companies listed on the NGX, inflation can affect costs, consumer demand and profit expectations. Businesses may face higher expenses for transport, electricity, raw materials and wages.
At the same time, customers dealing with high living costs may reduce spending on non-essential goods and services. Consequently, investors may remain cautious until company results show that businesses can manage these pressures.
BANKING SHARES WEIGH ON THE INDEX
Losses in major banking stocks contributed to the market’s weekly decline. The NGX Banking Index fell by 3.15 per cent, making it one of the weakest major sectoral indices during the period.
Zenith Bank dropped by about 6.46 per cent, while Guaranty Trust Holding Company, known as GTCO, lost around 5.10 per cent. First HoldCo also came under pressure.
However, not every listed company recorded a loss. Weekly market reports showed that 50 equities advanced, while 30 declined and 66 closed unchanged. Another report recorded 49 gainers and 29 decliners.
Although the exact totals differed across reports, both showed that more shares rose than fell. Still, gains in some stocks were not strong enough to offset losses in influential companies.
OIL AND GAS SHARES PROVIDE SUPPORT
The NGX Oil and Gas Index rose by 3.13 per cent during the week, making it the strongest-performing sectoral index in the market review.
The Commodity Index also advanced by 2.36 per cent. Meanwhile, the Consumer Goods Index gained a marginal 0.09 per cent, and the Industrial Goods Index was almost flat.
Individual share movements also varied widely. Livestock Feeds rose by 44.49 per cent, while E-Tranzact International gained 42.98 per cent and Multi-Trex Integrated Foods advanced 42.86 per cent.
On the other hand, UPDC Real Estate Investment Trust fell by 11.88 per cent, Nigerian Enamelware declined by 9.95 per cent, and NASCON Allied Industries lost 9.48 per cent.
TRADING ACTIVITY SLOWS
Trading activity weakened during the review week. Investors exchanged about 1.659 billion shares valued at ₦98.09 billion in 184,632 deals.
In the preceding week, they traded 2.715 billion shares worth ₦158.28 billion in 209,986 deals. The figures indicate that both the volume and value of transactions fell sharply.
Financial services remained the most active sector. It accounted for about 1.083 billion shares valued at ₦48.97 billion across 86,994 deals.
This represented roughly 65.31 per cent of total traded volume and 49.92 per cent of total traded value.
Access Holdings, United Bank for Africa and Livestock Feeds ranked among the most actively traded equities by volume.
Lower trading activity can signal caution, although it does not explain investor behaviour on its own.
Some investors may be waiting for clearer signals from company earnings, inflation data or interest-rate decisions.
Others may be taking profits after the market’s substantial gains earlier in the year. The NGX All-Share Index still recorded a year-to-date return of about 59.07 per cent at the end of the review period.
WHAT COULD SHAPE THE NEXT MOVE?
Investors are now watching third-quarter corporate results, dividend announcements and developments in major sectors for clues about the market’s next direction.
Strong earnings could encourage selective buying, especially where share prices have fallen and valuations appear attractive.
However, disappointing results or fresh economic concerns could extend the current period of weakness.
Oil prices and energy costs will also matter. Changes in crude prices can influence transport, production and distribution expenses, while also affecting expectations for inflation and economic activity.
The impact will vary from company to company, depending on its cost structure and ability to pass higher expenses on to customers.
The key point is that falling inflation and rising share prices do not always move together. Inflation data can improve while investors remain concerned about household demand, company costs, interest rates or valuations.
For now, Nigeria’s stock market is showing that a slower pace of price increases alone may not be enough to trigger a broad recovery.
The coming weeks should provide a clearer picture as listed companies release their results and investors assess whether recent declines create attractive opportunities.
Until then, market direction is likely to depend on company fundamentals, sector performance and confidence in the wider economy.
Investors should review official NGX disclosures and company filings before making decisions, rather than relying on headline movements alone.
