The combination of the domino effect of MPC’s recent rate cut and more banks’ release of their half-year (H1) financials (with interim dividend proposals) is strengthening investors’ expectations of more positives in the equities market.
Stock investors’ hope of further positives in the market manifested on Monday as the market recorded positive of 0.17 percent.
“We expect equities to post modest gains this week, driven by portfolio repositioning ahead of Q3:2025 earnings and bank interim dividends, which should boost sentiment and demand for fundamentally sound stocks,” Futureview analysts said on Monday.
While H1’25 results of tier-one banks like UBA, Zenith and GTCO were recently released, investors expect that of Access Holdings after CBN’s approval.
FBN Holdings has informed the public and its stakeholders that the Board of Directors of First HoldCo Plc (the Company) will be meeting on Thursday, October 30, 2025 to consider the Unaudited Accounts for the period ending September 30, 2025.
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“Nigerian equities may find support in resilience in the recent and incoming banks’ earnings,” United Capital research analysts said on Monday. Despite recent rally, the NGX Banking Index has underperformed by 0.18 percent this month, according to September 29 trading data.
The domestic bourse extended its bullish momentum last week, its third consecutive week of rally, supported by strong activity in the Industrial Goods, Banking and Consumer Goods sectors.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) gained 0.20 percent to close at 142,133.03 points from 141,845.34 points the preceding week, while market capitalisation rose by 0.24 percent to N89.96trillion from N89.74trillion. On a monthly basis, the index edged up 1.31percent, while year-to-date (YtD) return eased to 38.09percent.
“As communicated in last week’s Model Equity Portfolio (MEP), we have revised UBA from overweight to market weight given earnings-related pressures. We would also continue to monitor sentiments around H1’25 release for banks, especially Access Holdings and Fidelity Bank to take advantage of attractive entry opportunities,” according to CardinalStone research analysts.
“The momentum for the coming week will be driven by the sustained follow-through in bellwethers, as investors continue to see value after the correction sparked by H1 2025 earnings. The key narrative will be whether the value hunters, having successfully pushed the banking and industrial goods sectors higher, can maintain the market’s overall positive direction against any renewed profit-taking,” according to Lagos-based Vetiva research in their September 29 breakfast report.
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“We expect a mild downward adjustment in yields across the curve in the near term, with stronger compression at the short end. The long end is likely to remain sticky, capped by fiscal funding pressures. Market participants will continue to price in the credibility of the disinflation path and the sustainability of FX stability,” Coronation research analysts said in their post-MPC note.
“MPC decision reflects an effort to balance vigilance on inflation with the need to create space for credit expansion and investment,” said Bukola Bankole, Partner and Corporate Finance Expert at TNP.
“’By lowering the benchmark rate by 50bps to 27percent, the MPC made a modest but symbolic move as it marks the first break from months of aggressive tightening.
“For businesses already borrowing at rates above 30 percent however, this adjustment will not ease financing costs immediately, but it signals recognition that growth cannot be perpetually stifled in the name of inflation control.
For investors, Nigeria’s yield story remains unchanged because even after the cut, local instruments remain among the most attractive across frontier and emerging markets,” Bankole noted.