September 2, 2025/CSL Research

• Investor sentiment in the domestic bourse was mixed in August 2025. While bearish pressures emerged, driven mainly by profit-taking, sector-specific positive news in the Insurance space provided some support to market sentiment.
• Market breadth remained positive, closing at 1.22x (Jul-25: 8.91x), with 62 gainers and 51 losers—compared to 98 gainers and 11 decliners in Jul-25. Subsequently, the NGX All-Share Index inched up by 31 basis points month-on-month (m/m) to close at 140,295.47 points (after hitting a year high of 146,570.69 points on 7-Aug-25), bringing the year-to-date (ytd) return to +36.31%.​
• Trading activity was mixed. Average daily volume rose by 17.5% m/m to 1.13 billion units, while average daily value declined by 23.3% m/m to ₦18.44 billion. This reflected increased bias toward small and mid-cap stocks, particularly in the insurance sector.
• Aside from the regulatory announcement on the proposed recapitalisation of insurance companies—which triggered rallies in the sector—and a few corporate disclosures that lifted sentiment in select stocks, investor activity in August was largely dominated by profit-taking. This trend was further reinforced by the reversal in the downtrend of fixed-income yields, which restored the appeal of fixed-income instruments relative to what appeared to be an overheated equities market.​

September 2025 market prospects

• As we enter September, we expect the market to retain a cautious yet opportunistic tone, reflecting the mixed performance in August. Profit-taking is likely to persist, particularly in stocks with strong year-to-date gains. However, we also anticipate renewed bargain hunting and selective buying, especially in counters where recent price corrections have created more attractive entry points.​
• The banking sector is likely to remain in the spotlight. Banks offering clarity on issues around their exit of the forbearance regime are expected to attract attention, with investors positioning ahead of potential upside from improved regulatory visibility and earnings stability.
• Ongoing regulatory and policy developments—such as the proposed recapitalisation in the insurance sector—could drive sector-specific rallies, creating tactical opportunities for investors looking to capitalise on short-term momentum.​
• On the downside, the rebound in fixed-income yields may continue to pressure equities, particularly among investors prioritising lower-risk, income-generating assets. Nonetheless, quality dividend-paying stocks with solid earnings outlooks are likely to remain competitive in attracting capital.

September 2025 Top 10 Stock Picks

Kindly click on the below link to download the September 2025 monthly stock picks report.

​​​​​​​​​​​​​CSL Nigeria Monthly Stock