NGX rallies 8% in October as earnings, reforms lift investor confidence

The Nigerian Exchange Limited (NGX) closed October 2025 on a strong bullish note, advancing by 8 per cent as improved corporate earnings and ongoing fiscal and monetary reforms boosted investor sentiment.

The NGX All-Share Index rose from 142,713.1 points at the start of the month to 154,126.4 points at the close, with over 12 billion shares traded. October became the second-best performing month of the year after July’s 16.57 per cent gain. The market has now returned 49.74 per cent year-to-date, with the second half of 2025 alone accounting for 28.46 per cent of the performance.

Except for a mild 1.99 per cent dip in March, the market has closed positive every month this year, defying global volatility and domestic economic pressures.

Analysts attribute the sustained rally to strong third-quarter results, renewed foreign portfolio inflows and policy reforms that have improved liquidity and stabilised the macroeconomic outlook.

“The strong performance reflects renewed confidence in Nigeria’s economic direction,” said Temi Popoola, GMD/CEO of NGX Group. “Improving corporate earnings and credible policy actions are creating a more predictable environment for investors. Our focus remains on deepening market resilience and promoting sustainable long-term growth.”

Sector performance was broadly positive. The Industrial Goods Index led with a 17.5% gain to 5,955.8 points, driven by Dangote Cement (+25.69%), BUA Cement (+12.5%) and Lafarge Africa (+11.91%).

The Oil and Gas Index posted its best monthly performance this year, up 15.45%, supported by firm crude prices and solid earnings. Aradel Holdings gained 27.15%, while Seplat Energy rose 10%.

The Consumer Goods Index extended its winning streak to seven months, advancing 4.85%, with gains in BUA Foods (+9.97%), PZ Cussons Nigeria (+20.29%) and Vitafoam Nigeria (+17.79%). The Insurance Index also rose 3.37%, supported by Sovereign Trust Insurance (+30%) and AIICO Insurance (+11.71%).

The Banking Index was the lone decliner, down 3.15%, following sell-offs in major tier-one lenders, despite gains from Wema Bank (+20.29%).

Commenting on the outlook, CEO of Nigerian Exchange Limited, Jude Chiemeka, said the October performance underscores strong investor engagement. “Our priority is to maintain a transparent and efficient market that reflects the strength and resilience of Nigeria’s economy,” he said.

With two months remaining in the year, attention is now shifting to corporate forward guidance and macroeconomic indicators to determine whether the momentum can be sustained into 2026.