Daniel Wesonga
Nigerian equities showed signs of stabilization, with the NGX All Share Index rising 0.48% to 141,004.14 points on Friday. Gains were broad-based, led by electronic technology, consumer durables, and health technology, while commercial services, non-energy minerals, and producer manufacturing lagged. Top performers included BUA Foods, Guaranty Trust Holding, Zenith Bank, and International Breweries, while MTN Nigeria Communications, Dangote Cement, and Aradel ended unchanged, and Lafarge Cement and Stanbic IBTC Holdings closed lower.
Nigeria strengthened strategic ties with Japan at the Ninth Tokyo International Conference on African Development (TICAD 9), securing a USD 190 million renewable energy loan from JICA and advancing grid expansions, new substations, and off-grid solutions. These initiatives may support the local stock market by boosting industrial productivity, utilities, and renewable energy sectors.
Meanwhile, the Federal Roads Maintenance Agency (FERMA) also signed a two-year Long-Term Strategic Framework Agreement with the Global Cooperation Promotion Research Centre (GCPRC) to modernize roads and deepen Nigeria-China collaboration. Joint project planning, technology transfer, and capacity building could benefit domestic equities in the construction, materials, and engineering services sector.
Looking ahead, market participants await Nigeria’s Q2 GDP figures. In Q1 2025, the economy grew 3.13% YoY, led by services and industry, while the oil sector slowed to 1.87% and agriculture rebounded slightly. A stronger GDP could support industrial and consumer sectors, while a weaker reading may weigh on cyclical areas such as manufacturing and oil.
Wesonga is Senior Sales Manager at Pepperstone
