By Peter Egwuatu

Despite the global economic uncertainties driven by US trade policy, which made global investors exercise caution for some weeks now, the Nigerian equities market ended last week on a positive record.

This development was driven by the first quarter 2025, Q1’25, companies’ earnings and dividend declarations.

Consequently, the Nigeria Exchange Limited, NGX, All Share Index, ASI, closed higher by  0.3% Week-on-Week, W/W to end at 106,042.57 points from 105,752.61.

Similarly, market capitalisation surged higher to N66.647 trillion from N66.465 trillion.

Market analysts have emphasised that already, the USA’s tariffs and counter-tariffs imposed by other countries are resulting in selloffs in the major markets around the world, thereby creating buy opportunities for traders and investors in the Nigerian market, coupled with the healthy company scorecards and dividend payouts.

Analysis of trading last week on the NGX showed that gains recorded by major blue chip companies across the sectors lifted the market  with 52 equities appreciating in price during the week, while 37 depreciated.

Market activity was robust with trading volume and value increasing by 18.2% and 34.1% W/W respectively. Meanwhile, sectoral performance was mixed, as the Consumer Goods Index rise 2.9% and Industrial Goods Index   0.4%, while the Oil & Gas Index declined by -2.9%,   Insurance Index   -2.9% and Banking Index -0.3%.  

Reacting to the market outlook, analysts at Cordros Research stated: “Looking ahead, we expect investor sentiment to be influenced by macroeconomic signals and movements in fixed income yields”.

In their own outlook, analysts at InvestData Consulting Limited stated: “There is possibility of an uptrend in the month of May with the inflow of smart money into the market after institutional players are done with digesting these corporate earnings, armed with a clear direction of interest rate, ahead of the Central Bank of Nigeria (CBN) Monetary Policy Committee meeting slated to May 19-20.

“Also, dividend payment and markdown for December 31, 2024 accounts continue in this month, while investors move their gaze to March year-end audited results, as well as late Q1’25 earnings reports which would hit the market this new month of May.

“These expectations are likely to shape the market in the coming days and weeks, even as bargain hunting activities among traders and investors would increase with buying interests at a time the prices of many equities are trading at a discount to their true value”.