By Daniel Wesonga, Senior Sales Manager at Pepperstone

Nigerian stocks continue to exhibit stable performance, with the NGX All Share Index up 0.12%, holding above the key level of 106,000 points. While several sectors closed in the green, the health technology, process industries, and financial sectors weighed on the broad market. Among the top financial sector’s constituents, Guaranty Trust Holding, First Holdco Plc, and United Bank for Africa Plc declined by -1.79%, -0.35%, and -0.68%, respectively, while Zenith Bank added 0.52%. The flat performance of major stocks such as Dangote Cement and Bua Foods reflects cautious investor sentiment amidst macroeconomic challenges. The outlook for the equity market remains relatively neutral, with market participants awaiting clearer economic signals.

Inflation moderated from 34.8% in December 2024 to 24.48% in January, and the PMI rose to 53.7 in February, reflecting improved business conditions. While inflation and business growth are positive, employment remains sluggish due to cost pressures. These improvements could provide long-term support for the equity market as inflation stabilizes inflation, creating a more predictable business environment. However, the U.S.-China trade tensions present risks to Nigeria’s economy, with tariffs potentially disrupting global supply chains.