By Daniel Wesonga

Nigerian equities remain stable as market participants assess global and domestic developments. The NGX All Share Index remained relatively flat, hovering above 106,500 points during the previous session. Market breadth remains relatively optimistic, with only 6 of 19 sectors in the red. The technology services sector advanced by 4.86% with Africa Prudential Registrar Plc seeing a 9.85% surge. Consumer durables and utilities showed resilience with gains of 2.66% and 0.85%, respectively. However, large-cap stocks such as Dangote Cement, Bua Foods, and MTN Nigeria ended the previous session flat. This suggests cautious investor sentiment, with no significant upside expected unless global or domestic factors shift in the near term.

The global oil market has also impacted Nigerian equities, as oil prices remain capped due to U.S. tariff uncertainties and rising production from OPEC+ members. Lower oil prices weighed on oil-related stocks, crucial for Nigeria’s economy, and limited broader market optimism. While an oil price recovery could provide support, prolonged volatility could hinder investor confidence and limit market rallies.

Meanwhile, the weak naira has created both opportunities and challenges. Nigeria’s trade surplus reached a record NGN 16.9 trillion in 2024. However, the naira’s depreciation has led to higher import costs, straining businesses reliant on foreign goods. Despite this, foreign capital inflows have contributed to reserves to over USD 40 billion, providing a buffer.

Wesonga is Senior Sales Manager at Pepperstone