Investment researchers and analysts at Bancorp Securities Limited, a leading stockbroking and investment consultancy services firm in Nigeria, have projected that selective strength will define the Nigerian Exchange (NGX) trading sessions in the weeks ahead, with financial services sector likely to remain in focus by investors.
The experts, in the firm’s ‘Weekly Stock Recommendation 11th-15th August 2025’ circulated to our correspondent on Monday, noted that after 11 straight weeks of gains, the market was beginning to look stretched in parts, with several names trading near short-term ceilings.
In view of the current trading trend in the local bourse and other micro and macroeconomic indices of the economy, they predicted: “We expect selective strength to define the weeks ahead, with likely to remain in focus. Insurance stocks, which turned strongly positive after the NIIRA bill was signed and dominated the week’s top gainers, may see follow-through interest as recapitalization expectations build, though the staying power of this rally will depend on how quickly listed insurers translate reforms into concrete corporate actions.
“Fintech-linked plays, particularly those embedded within listed banks and payment processors, also have room to extend gains, supported by surging transaction volumes and accelerating digital finance adoption”, the investment experts added.
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They recalled that last week, Nigeria’s macroeconomic narrative was shaped by two pivotal developments, namely a sharp surge in foreign capital inflows; and the enactment of a landmark insurance sector reform set to trigger industry-wide recapitalization.
On the market overview, the experts noted that with trading in the green zone throughout last week and a brief pause on Friday, the Nigerian equities market extended its bullish run for the 11th consecutive week, driven mainly by gains in the Insurance and Industrial Goods sectors.
Consequently, the investment researchers reported that the NGX-ASI advanced by 3.18% week-on-week to close at 145,754.91 points on Friday while market capitalization rose by N2.84 trillion to settle at N92.21 trillion.
They further noted that despite the positive overall index performance, trading activity reflected mixed sentiment as total volume traded increased sharply by 80.24% to 8.73 billion units, while total value traded declined by 10.13% to N134.57 billion across 180,289 deals.
This is even as the experts reported that from a technical standpoint, the weekly up/down (UD) volume ratio jumped to 5.30x from 1.18x in the prior week, indicating strong buying pressure and dominance of advancing volume over declining volume.
Also, they noted that the TRIN (Trader’s Index) dropped to 0.34x from 0.97x, reinforcing the bullish bias as advancing stocks attracted higher volume relative to decliners.
