Weekly Market Highlights

The Nigerian equities market experienced a rather mixed performance during the week under review, ultimately closing in negative territory. The NGX All Share Index (NGXASI) slipped by 0.19% week-on-week to settle at 143,519.81 points, even though year-to-date returns remained robust at 39.44%. The market began the week on a bearish note, weighed down by declines in stocks such as SterlingNG, Afriprud, and UBA.

Midweek trading saw further pressure, particularly from bellwether names like BUACEMENT, Meyer, and Cadbury, which triggered reversals of earlier gains. However, towards the end of the week, the market managed to eke out slight recoveries, supported by advances in companies such as Ikeja Hotel and Cadbury, allowing the index to close marginally higher on the final trading day.

Despite the headline decline, trading activity showed signs of resilience. Market breadth improved significantly to 1.18x from 0.38x in the prior week, indicating that a larger proportion of stocks advanced relative to decliners. Volumes rose modestly by 1.38% to 2.68 billion units, while the value of trades jumped by 10.78% to NGN109.01 billion, reflecting stronger investor participation.

Sectoral performance, however, was broadly negative. The industrial goods index led the laggards, falling by 1.92% week-on-week, largely due to weakness in BUACEMENT. Oil and gas stocks also retreated, with Oando dragging the sector down by 0.81%. Consumer goods slipped by 0.70%, driven by declines in Nigerian Breweries and International Breweries, while the banking index shed 0.67% on account of losses in Wema Bank and UBA. The insurance index dipped slightly by 0.07%, weighed down by Sunu Assurances and Lasaco.

In terms of individual stock performance, Ikeja Hotel stood out as the week's top gainer, surging by an impressive 45.18%, followed by NCR, which rose by 32.97%. Other notable gainers included UACN, New Gold, and CWG. On the flip side, Meyer was the worst performer, plunging by 18.89%, while Sunu Assurances, UPDC, Tantalizer, and Dangote Cement also featured among the week's top losers.

Overall, while the market's headline index reflected a mild decline, the underlying dynamics suggested improving sentiment, with stronger breadth and higher trading activity pointing to renewed investor interest in select counters despite sector-wide weakness.

In the currency and money markets, activity during the week reflected a mix of cautious optimism and liquidity adjustments. The naira showed a slight appreciation in the Nigerian Foreign Exchange Market (NFEM), closing at NGN1,446.74 per dollar compared to NGN1,456.72 the previous week. This modest gain of 0.69% suggests some improvement in foreign exchange liquidity, likely supported by marginal increases in oil production and fiscal inflows.

While the movement was not dramatic, it points to a stabilizing trend in the exchange rate, offering some relief to importers and businesses exposed to dollar-denominated costs.

On the money market side, short-term rates eased as liquidity conditions improved. The Overnight Borrowing (OBB) rate fell to 22.50% from 24.50%, while the Overnight (OVN) rate declined to 22.71% from 24.83%. These drops of more than 8% week-on-week highlight the impact of the Monetary Policy Committee's decision to adjust the asymmetric corridor around the Monetary Policy Rate.

By lowering the Standing Deposit Facility to 22.50%, the Central Bank reduced the incentive for banks to park excess liquidity with it, thereby encouraging more lending to the real sector. This policy shift, combined with the retention of the Monetary Policy Rate at 27%, created an environment where borrowing costs remain elevated but liquidity is more readily available for productive investment.

Overall, the currency market showed signs of resilience, while the money market reflected a deliberate attempt by policymakers to balance tight monetary conditions with incentives for credit creation. The combination of a firmer naira and lower short-term rates suggests that, at least in the near term, financial conditions are becoming more supportive of economic activity, even as the broader interest rate environment remains restrictive.

The global market review for the week ending 28th November 2025 painted a picture of cautious optimism across major economies, with equities, commodities, and currencies all reflecting the interplay of fiscal policy announcements, central bank actions, and investor sentiment.

U.S. Markets

In the United States, the S&P 500 extended its winning streak, closing the week higher by 1.54%. Gains were driven largely by strong earnings from technology heavyweights such as Microsoft, Alphabet, and Nvidia, which continued to benefit from investor enthusiasm around artificial intelligence. The Thanksgiving holiday shortened trading activity, but the positive momentum was sustained by expectations of a Federal Reserve rate cut, which investors believe could materialize sooner rather than later.

European Markets

Across Europe, the STOXX 600 index rose by 0.53% week-on-week, supported by optimism around the UK Autumn Budget and improved confidence in the prospect of Fed easing. Sector performance was mixed, but financials such as AXA and BNP provided notable support. Meanwhile, the FTSE 100 in London posted a robust 1.80% weekly gain, buoyed by investor reaction to the UK's budget announcement and strong performances from companies like EasyJet and the Weir Group.

Currency Markets

On the currency front, the U.S. dollar softened slightly against major peers as expectations of monetary easing weighed on yields. The euro and pound sterling both gained modestly, supported by improved growth outlooks in Europe and the UK. Emerging market currencies such as the Ghanaian cedi and Kenyan shilling benefited from stronger trade and growth prospects, while the naira in Nigeria appreciated marginally in the official window, though pressures persisted in the parallel market.

Taken together, the global markets reflected a delicate balance: optimism around fiscal support and easing inflation was countered by lingering geopolitical risks and cautious central bank signaling. Equities and digital assets thrived on expectations of lower rates, commodities found support in supply dynamics and safe-haven demand, while currencies adjusted to the shifting interest rate narrative.