The Nigerian Exchange (NGX) closed October 2025 on a high note, recording an 8% monthly gain that reinforced the bullish trend dominating the second half of the year. The NGX All-Share Index (ASI) climbed from 142,713.1 points at the start of the month to 154,126.4 points, as investor confidence surged amid strong third-quarter corporate earnings and renewed institutional interest across key sectors.
More than 12 billion shares were traded during the month, reflecting sustained activity and market liquidity. October’s rally represents the second-best monthly performance of 2025, trailing only July’s remarkable 16.57% surge. Year-to-date (YTD), the NGX has delivered an impressive 49.74% return, with the second half alone contributing over 28% to total market gains.
Market observers attribute this strong performance to robust corporate fundamentals, improved macroeconomic sentiment, and the release of stellar Q3 results by blue-chip firms. Investor rotation into value-driven sectors such as industrial goods, oil and gas, and consumer goods also provided significant momentum.
Industrial Stocks Lead the Rally
The Industrial Goods Index was the standout performer in October, advancing 17.5% to close at 5,955.8 points, up from 5,068.7 points at the beginning of the month. Trading activity was buoyant, with over 352 million shares exchanged as investors aggressively positioned themselves in industrial counters.
Cement manufacturers—Dangote Cement, BUA Cement, and Lafarge Africa—were the primary drivers of the rally. Dangote Cement soared 25.69%, benefiting from strong earnings and robust demand from infrastructure projects. BUA Cement followed closely with a 12.5% gain, while Lafarge Africa added 11.91%, all contributing significantly to the index’s advance given their heavy weighting on the NGX.
Other industrial names also performed well: Berger Paints climbed 8.97%, Cutix Plc added 4.44%, and Chemical & Allied Products (CAP) rose 2.82%. The sector’s rally underscores renewed investor optimism in Nigeria’s manufacturing recovery and infrastructure development outlook.
Oil and Gas Sector Posts Best Month of the Year
The Oil and Gas Index followed closely with a 15.45% gain, marking its strongest month in 2025. Starting the month at 2,523.1 points, the index climbed to 2,912.8 points, supported by bullish sentiment and higher trading volumes totaling 212 million shares.
Aradel Holdings led the sectoral rally with an impressive 27.15% surge, while Seplat Energy advanced 10%, both buoyed by rising crude oil prices and optimism around local refining prospects. Oando Plc added 4.46%, recording its most bullish month since July 2025 as investors priced in its improving operational performance and restructuring progress.
Consumer Goods Maintain Steady Growth
The Consumer Goods Index extended its winning streak into the seventh consecutive month, rising 4.85% to close at 3,534.3 points, up from 3,370.9 points. Trading volumes reached 615 million shares, reflecting sustained investor appetite.
The sector’s performance was anchored by BUA Foods, which gained 9.97% and remains the largest listed company by market capitalization. Its solid fundamentals and strong Q3 results provided a cushion against declines in other consumer counters.
Supporting stocks included PZ Cussons Nigeria (+20.29%), Vitafoam Nigeria (+17.79%), NASCON Allied Industries (+14.58%), Unilever Nigeria (+5.48%), and Nestlé Nigeria (+2.41%). Collectively, these companies underscored consumer resilience despite inflationary headwinds and rising input costs.
Insurance Stocks Extend Momentum
The Insurance Index sustained its upward trend, gaining 3.37% in October on the back of strong investor interest in low-priced, high-volume equities. The index advanced from 1,191.0 points to 1,231.2 points, with over 2.1 billion shares traded during the month.
Sovereign Trust Insurance led the sector with a 30% jump, followed by AIICO Insurance (+11.71%) and NEM Insurance (+10.91%). Other notable contributors included Consolidated Hallmark (+9.22%), Universal Insurance (+5.26%), Regency Alliance (+2.50%), and Cornerstone Insurance (+1.65%).
Analysts note that the sector continues to benefit from improving investor sentiment, stronger regulatory oversight, and recapitalization efforts that have enhanced financial stability.
Banking Sector Faces Pressure
In contrast to the broad market rally, the Banking Index ended the month in negative territory, falling 3.15% as profit-taking and weak Q3 results from top-tier lenders weighed on sentiment.
Four of the five FUGAZ banks—First Bank HoldCo, UBA, GTCO, Access Holdings, and Zenith Bank—closed the month in the red, while First HoldCo finished flat. Despite gains in Wema Bank (+20.29%), Ecobank (+8.19%), and Stanbic IBTC (+2.75%), these advances were insufficient to offset the broader losses in the tier-one space.
Market analysts attribute the weakness to rising funding costs, regulatory pressures, and subdued credit growth. However, they expect renewed interest in the sector once the Central Bank concludes its ongoing recapitalization exercise.
Outlook: Optimism Prevails
With the NGX up nearly 50% year-to-date, market analysts remain cautiously optimistic heading into the final months of 2025. The combination of robust earnings, improving macroeconomic indicators, and foreign investor re-entry is expected to sustain momentum into the year’s end.
However, risks such as inflation, volatile FX markets, and policy uncertainty could temper gains. Still, October’s 8% rally underscores the resilience of the Nigerian equities market and reinforces its position as one of Africa’s top-performing exchanges in 2025.
