NGX Opens February Trading On Positive Momentum Ahead Of Dividend Announcements

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The Nigerian Equity Market closed the first full trading week of February on a positive note, with the NGX All- Share index and Market Capitalisation increasing by 1.38% and 1.37%, respectively, ending the week at 105,933.03 and N65.592 trillion.

A total of 168 stocks recorded gains during the week, while 121 others suffered decline of various degrees, reflecting the renewed buying interest as the earnings reporting season and dividend expectations continue. The Northward movement was buoyed majorly by the shares of financial services industry which accounted for 2.260 billion shares valued at N52.190 billion, traded in 33,724 deals, thus contributing 74.08% and 53.07% to the total equity turnover volume and value respectively.

Position taking was equally witnessed across the major sectors of the market, a situation that supported the benchmark index as it closed higher on a very high traded volume that signalled the presence of smart money in the market. This is also related to the continued decline in tenor of the 364-day bills at last week’s the Nigerian Treasury Bill primary market auction, triggering the flow of funds into the equity space for dividend income and capital gains in the short-term. Already, the full-year earnings of listed companies have so far beat market expectation.

The NGX in the week under review saw a markup phase and a bullish trend in the face of volatility arising from the earnings season, which at the same time creates opportunities for discerning investors and smart traders to make money. On the daily and weekly time frame, the market was up as revealed by the index action below.

NGXASI Daily Index Action

The NGX recorded five straight trading sessions of bull transition as seen in the above index’s action with momentum indicators and tools pointing to a strong market supported by improved traded volume, despite oscillating to reveal the wait-and-see mindset of market players.

NGXASI Weekly Chart (Opening Chart)

The chart above reveals three consecutive weeks of bull-run on the exchange, as earnings released so far were impressive, just as reactions to these numbers impacted the uptrend, despite the pockets of profit booking here and there within the periods.

UPDC Weekly Chart

UPDC Plc, a Nigerian real estate company, experienced a 38.50% growth in its share price, closing at N2.59, up from N1.87. ETERNA, which specializes in retail petroleum products marketing, rose by 32.79%, closing at N36.65 from N27.60. INTERNATIONAL ENERGY INSURANCE PLC saw a 29.53% gain, closing at N2.50, while CADBURY NIGERIA PLC surged by 27.61%, closing at N29.35. FIDSON HEALTHCARE gained 24.40%, closing at N20.90 each.

Sunu Assurance Weekly Chart

On the decliners chart, SUNU ASSURANCES NIGERIA lost 12.87%, closing at N5.01 per share, while UNIVERSITY PRESS lost 10.00%, closing at N5.04 each. MULTIVERSE MINING AND EXPLORATION lost 9.95%, closing at N9.05, followed by SCOA Nigeria with a 9.83% decline to N3.67 per unit. TRIPPLE GEE AND COMPANY also saw a 9.72% decrease, closing at N2.23.

Economic News

Trending in the Economy: President Bola Tinubu has increased Nigeria’s 2025 budget to ₦54.2 trillion ($36.4 billion) from the previous ₦49 trillion, citing additional revenue from government agencies, including the Federal Inland Revenue Service (₦1.4 trillion), Nigeria Customs Service (₦1.2 trillion), and others (₦1.8 trillion). During the week, the Nigerian Naira appreciated, trading below N1,555 per US dollar. Stability of naira is expected to have positive impact on the economy if sustained.

The government had earlier projected a budget deficit of 3.89% of GDP, amounting to ₦13 trillion. Tinubu’s letter to the Senate, published Wednesday, highlighted that higher tax collections and customs duties contributed to the revision.

Global Market and Oil: U.S. stock indexes ended lower on Friday after President Trump’s tariff announcement for next week, along with weak jobs and consumer sentiment data. Consumer sentiment fell, inflation expectations rose to 4.3%, and job growth slowed in January. Despite a 4% unemployment rate, rate cuts may be delayed until June.

The Dow lost 444.23 points (0.99%), the S&P 500 dropped 57.58 points (0.95%), and the Nasdaq fell 268.59 points (1.36%). All indexes finished the week lower.

Uber rose 6.6% after Bill Ackman revealed a large stake, while Amazon fell 4.1% due to weak cloud results. The Cboe Volatility Index climbed 6.6% to 16.3. Traders are now expecting one rate cut this year. Expedia gained 17.3%, while Elf Beauty dropped 19.6%. Total volume was 15.06 billion shares.

Oil prices rose slightly on Friday after U.S. sanctions on Iranian oil exports, but ended the week lower due to concerns about Trump’s trade war and potential tariffs. Brent crude increased 0.5% to $74.66 a barrel, but fell over 2% for the week. U.S. West Texas Intermediate crude rose 0.55% to $71.00.

John Kilduff of Again Capital LLC said Trump’s tariff threats limited price gains, with traders awaiting policy changes. The U.S. Treasury imposed sanctions on individuals and tankers linked to Iranian oil shipments to China. Michael Haigh of Societe Generale noted that while tariffs create uncertainty, concerns over global demand weighed on oil prices.

Sectorial Indexes Charts Below

NGX Banking Index Weekly Chart