Investment experts at Bancorp Securities Limited, one of the leading investment and stockbroking services providers in Nigeria, on Monday anticipated that the nation’s equities market will be under pressure amid the bearish performance of the market over the past few weeks.
The experts, in the firm’s ‘Weekly Stock Recommendation 26th-30th October 2026’ Note circulated to our correspondent, projected that during the trading sessions in the local bourse this week, investor sentiment would be influenced by third quarter’s earnings releases by the listed companies.
The analysts forecasted: “We expect the Nigerian equities market to remain under selling pressure this week, following the deterioration in market breadth to 0.36x and a Weekly U/D Ratio of 0.58x in the preceding week, despite a 22.03% increase in trading volume.
“Investor sentiment will be influenced by Q3 earnings releases, particularly within Banking, Consumer Goods and Industrial Goods. While selective buying in fundamentally strong stocks could support market performance, a sustained recovery will require improved market breadth and renewed demand for large-cap equities”, they added.
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The investment researchers recalled that last week, Nigeria’s macroeconomic developments were characterized by an expansion in broad money supply, weaker private-sector credit and renewed pressure on the Naira as broad money supply (M3) increased by 5.40% to NGN146.60 trillion in September, while private-sector credit declined by 0.64% to NGN83.93 trillion.
Meanwhile, they also noted that the Naira weakened amid increased foreign exchange demand, despite stronger external reserves.
On the capital market performance during the week under review, the experts reported that the Nigerian equities market remained in negative territory for the fourth consecutive week, although the pace of decline moderated as the NGX All-Share Index shed 0.13% week-on-week, compared with a 0.33% loss in the preceding week, to settle at 247,222.27 points.
They added that as a result, the market’s year-to-date return eased to 58.87%, while market capitalisation declined by approximately NGN206.00 billion to NGN160.52 trillion.
However, the experts noted that the NGX trading activity improved during the week, with total volume increasing by 22.03% to 2.02 billion shares from 1.66 billion shares in the preceding week.
Similarly, they reported that transaction value increased by 12.93% to N110.77 billion from N98.09 billion, while the number of deals declined by 6.24% to 173,113. The increase in volume and value, despite fewer transactions, indicating larger average trade sizes rather than broader market participation.
