Investment researchers at Bancorp Securities Limited, one of the leading stockbroking consultancies in the country, have projected that trading in the Nigerian equities market this week will be characterized by sustained pressure sequel to the bearish trend in the market past few weeks.
The experts, in the firm’s ‘Weekly Stock Recommendation 12th-16th October 2026’ circulated to our correspondent on Monday, recalled that last week the equities market extended its decline for a second consecutive week, as the NGX All-Share Index declined by 0.97% week-on-week to 248,363.55 points, compared with a 0.52% decline in the preceding week.
According to the experts, the bearish trend moderated the market’s YTD return to 59.60%, while market capitalisation declined by 0.97% to N161.26 trillion, representing a loss of approximately N1.58 trillion in market value.
Similarly, they noted that in the week under review, trading activity was mixed, with total volume declining 14.23% Week-on-week to 2.72 billion shares, compared with 3.17 billion shares in the preceding week.
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The researchers, however, reported that the value traded increased 2.10% to N158.28 billion, while the number of deals rose 1.61% to 209,986, suggesting that trading was concentrated in relatively higher-value transactions despite the decline in overall volume. Financial Services remained the dominant sector, accounting for 73.84% of total market volume and 52.39% of transaction value.
Hinging their forecast on the preceding indices of the equities market, the experts projected: “We expect the equities market to remain under pressure in the coming week, following two consecutive weeks of losses and weaker investor sentiment. Although Treasury Bill and OMO rates have declined, their relatively attractive returns may continue to limit demand for equities. Investors will also be watching the September inflation report and upcoming Q3 earnings releases.
“A further decline in inflation could support market sentiment, while stronger-than-expected corporate earnings may attract buying interest. However, weak earnings could lead to further selling, particularly in stocks with significant YTD gains. Consequently, we expect investors to focus on companies with strong earnings and attractive valuations”, the analysts added.
