Anticipations of strong yuletide bargain hunting last week spurred activities on the equities sector of the Nigerian Exchange Limited (NGX), as investors gained N2.43 trillion in five trading days.

The Nigerian equities market regained stability following a prolonged period of decline, extending its bullish momentum as four out of six trading sessions recorded notable gains.

The NGX all-share index closed the week at 147,040.26 points, rising 2.45 per cent from the previous week, signalling renewed investor confidence after weeks of intensified profit-taking. This uplift pushed total market capitalisation to N93.72 trillion, up 2.67 per cent from N91.29 trillion, and increased the year-to-date return to 42.86 per cent.

Market sentiment remained moderately positive as 42 stocks advanced while 38 declined. Trading activity showed a marked improvement, with the total number of deals rising 7.26 per cent and trading volume surging 60.26 per cent. However, the total traded value experienced a slight dip of 2.03 per cent.

Investors exchanged 6.62 billion shares valued at N113 billion across 109,680 deals, reflecting a highly active yet selective trading environment.

Sector performance mirrored the overall bullish mood as the industrial stocks led the charge with a 7.38 per cent gain on renewed investor interest, followed by banking stocks, which rose 3.20 per cent.

The consumer goods sector recorded a 1.56 per cent increase, while the Insurance sector advanced 1.48 per cent. In contrast, the oil and gas sector slipped 0.57 per cent amid pressure on both upstream and downstream companies, and the commodity sector eased 0.3 per cent week-on-week.

Individual stock performances further underscored market dynamics. NCR emerged as the top performer with an impressive 33 per cent gain, trailed by Guinness at 18.6 per cent, Champion at 11.6 per cent, UACN at 11.5 per cent, and Sunu Assurance at 11 per cent, reflecting strong accumulation.

On the other hand, the weakest performers included RT Briscoe, which fell 12.8 per cent, Eunisell declined by 10 per cent, TRANSCOHOT lost 9.9 per cent, and Living Trust slipped by 9.8 per cent, reflecting sustained selling pressure across these counters.

Looking ahead to the coming week, the Nigerian equities market is expected to maintain a cautiously optimistic outlook, reflecting a delicate balance between renewed investor confidence and ongoing market uncertainties.

Momentum is likely to persist in fundamentally strong stocks that have shown consistent performance and are actively being accumulated by investors, suggesting continued interest in quality blue-chip and growth-oriented companies.

At the same time, selective volatility may continue to affect sectors under external pressures, particularly oil and gas and commodities, where fluctuations in global prices, production constraints, and regulatory developments could trigger short-term market swings.

Market activity is also likely to be influenced by year-end portfolio adjustments, as investors engage in profit-taking to lock in gains ahead of the holiday season, while strategically positioning themselves for 2026.

Macroeconomic developments, including inflation trends, monetary policy signals, and currency fluctuations, are expected to shape market sentiment, adding a layer of caution to trading behaviour. Additionally, the anticipation of upcoming dividend announcements may drive selective buying, as investors seek income-generating opportunities alongside capital appreciation.

Overall, market participants are expected to adopt a measured approach, focusing on high-quality, resilient, and undervalued stocks that offer potential for both short-term gains and long-term growth.

Investors may strategically identify entry points in oversold counters, balancing risk and reward while positioning for possible shifts in broader market momentum.

This combination of cautious optimism, selective accumulation, and sector-focused attention is likely to define trading patterns in the near term, providing opportunities for well-informed investors to navigate a market that remains active yet selective.