NGX Earnings Season To Support Bottoming Amid Pullbacks, Dividend Payment

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Volatility on the Nigerian Exchange continued last week in the midst of selloffs that hits all classes of stocks and sectors on a mixed performance, made worse by the heightening global trade war.

The benchmark NGX All-Share index closed the week lower again thereby extending the week’s bearish outing for a second consecutive week on a low traded volume and mixed sentiments. Trading started bearish, but was halted on Tuesday with the composite index chalking a marginal 0.15%. This was however reversed at midweek’s session, as the index shed 0.18%, only to advance by 0.58% Thursday on rekindled buying opportunities created by the U.S tariffs policy. The NGX retraced back lower by 0.21% on Friday, bring the week’s total loss to 0.90% in the face of a negative market breadth, even as funds entered the market on the daily time frame.

Market capitalisation of the NGX settled at N65.707tr, and All-Share Index at 104,563.34 basis points. This left the year-to-date gain by the NGXASI at 1.59%, while the blue-chip NGX 30 was slightly better at 1.79%. The Banking Index is up 4. 83% YTD, Pension Index, 4.54%; just as the Insurance Index is down by significant 10.99%; Oil and Gas Index was negative return of 10.86%; ahead of the Consumer Goods Index’s 3.28%.

In terms of market breadth, 27 stocks advanced, while 56 declined during the week.

NGXASI Weekly Chart

Investor sentiment for the period was mixed, reading 40% buy volume and 60% sell position to reflect panic selloffs witnessed during the week under review. It true that the pullbacks created buying opportunity in the midst of funds leaving the market to read 58.64 on a weekly chart and MACD crossing the signal line to bearish MACD. NGX index trading slightly below the T line is indicating weak week underway, unless it breakout the T line to signal strength and uptrend.

VFD Group Weekly Chart

Leading the top gainer chart is, VFD Group Plc a Nigerian conglomerate operating in various sectors, including finance, investment, and technology. which surged from N57.00 to N87.70, marking a N30.70 gain or +53.86%.

Union Dicon Salt Plc followed with a +31.03% rise from N5.80 to N7.60, while Abbey Mortgage Bank Plc, on the nation’s foremost and most resilient mortgage banks, climbed 29.60% from N4.73 to N6.13 each on the news of its impending transformation into a full-fledged commercial bank..

Also on the gainers’ list were FTN Cocoa Processors Plc, which appreciated 18.75% from N1.60 to N1.90, and TotalEnergies Marketing Nigeria Plc, up 9.61% from N679.70 to N745.00.

Royal Exchange Weekly Chart

On the decliners chart is, Royal Exchange Plc a prominent Nigerian financial services group established in 1921. recorded the steepest decline, falling 20.79% from N1.01 to N0.80.

Cornerstone Insurance Plc dropped 15.15% from N3.30 to N2.80, and Sovereign Trust Insurance Plc fell 15.00% from N1.00 to N0.85. Lasaco Assurance Plc lost 12.82% from N2.34 to N2.04, while CAP Plc lost 11.70%, dropping from N47.00 to N41.50.

Trending in the Economy: Nigeria posted a $6.83 billion balance of payments surplus in 2024, reversing earlier deficits, the CBN reported. The improvement was driven by a $13.17 billion trade surplus, higher remittances (+8.9%), increased gas and non-oil exports, and reduced imports. FX reserves also slide to $38 billion. The report showed that import of petroleum products fell 23.2% to $14.1bn, while non-oil imports declined 12.6% to $25.7bn – signaling lower import bills amidst the commencement of activities at Dangote Refinery. On the export leg, gas export advanced 48.3% to $8.7bn, while non-oil export rose 24.6% to $7.5bn. Furthermore, diaspora remittance strengthened in 2024 as personal remittance rose 8.9% to $20.9bn while inflows from International Money Transfer Operator (IMTO) rose 43.5% to $4.7bn

Dangote Refinery has again cut petrol prices across Nigeria, this time from N880 to N865 per litre after the Federal Government reaffirmed its Naira-for-Crude policy, aimed at reducing forex use and boosting energy security. Distributors like MRS Oil and Ardova will reflect the new price.

Global Market and Oil: U.S. 10-year Treasury yields surged to 4.592%, marking their biggest weekly gain since 2001, amid fears China may be reducing its U.S. bond holdings following fresh U.S. tariffs. The dollar fell sharply, hitting a three-year low against the euro and its weakest level against the Swiss franc since 2015.

Gold jumped over 6% for the week, hitting a record $3,243.82 per ounce, after China retaliated with tariffs of up to 125% on U.S. goods.

Despite trade tensions, U.S. stocks rallied. The S&P 500 gained 1.81% to 5,363.36, the Nasdaq rose 2.06% to 16,724.46—its best week since November 2022—and the Dow climbed 1.56% to 40,212.71. Positive bank earnings and Fed support helped fuel the gains.

In Europe, the STOXX 600 dipped 0.1%, while MSCI’s global index rose 1.46%. Investor sentiment was weighed down by weak U.S. consumer data and falling producer prices.

Oil prices also rose, with Brent at $64.76 (+2.26%) and WTI at $61.50 (+2.38%).

NGX Sectorial Indexes Chart Position

NGX Banking Index Weekly Chart