The Nigerian equities market ended last week on a positive note, showing resilience despite ongoing global economic challenges, particularly the trade policies of the United States. These uncertainties had caused global investors to proceed with caution in recent weeks. However, strong earnings reports for the first quarter of 2025 and dividend announcements contributed to the growth of the Nigerian market.
The Nigeria Exchange Limited (NGX) All Share Index (ASI) saw a modest increase of 0.3% week-on-week, closing at 106,042.57 points, up from 105,752.61. Market capitalization also rose, moving from N66.465 trillion to N66.647 trillion.
Analysts note that the US trade tariffs and counter-tariffs imposed by other countries have triggered sell-offs in major global markets, which in turn has created buying opportunities for investors in Nigeria. The strong performance of Nigerian companies and their dividend payouts also played a key role in boosting investor confidence.
Last week’s trading analysis revealed that 52 stocks appreciated in value, while 37 saw declines. The market experienced a significant increase in activity, with both trading volume and value rising by 18.2% and 34.1% week-on-week, respectively. While sector performance was mixed, the Consumer Goods Index rose by 2.9% and the Industrial Goods Index gained 0.4%. However, the Oil & Gas, Insurance, and Banking sectors saw declines of 2.9%, 2.9%, and 0.3%, respectively.
Market analysts from Cordros Research predict that future investor sentiment will largely depend on macroeconomic signals and movements in fixed income yields. Meanwhile, InvestData Consulting Limited analysts forecast a potential upward trend in May, driven by inflows from institutional investors following the release of corporate earnings. The upcoming Central Bank of Nigeria (CBN) Monetary Policy Committee meeting, scheduled for May 19-20, could provide further direction for market behavior.
Looking ahead, analysts believe that the continued dividend payouts, as well as reports from companies with March year-end results and late Q1 2025 earnings, will shape market movements. Bargain hunting is expected to increase as many equities are currently trading below their true value, attracting buying interest.
