Daniel Wesonga

Nigerian equities extended their advance on Monday, with the NGX All Share Index maintaining its position above the 135,000-point threshold, as investors responded to strong corporate earnings from heavyweight constituents. Transcorp Power Plc drew attention after posting a 52% year-on-year increase in half-year revenue to NGN 205.8 billion and announcing an interim dividend of NGN 11.25 billion.

Market sentiment remained broadly resilient, though signs of fatigue appeared as 6 of the NGX’s 20 sectors closed in negative territory. MTN Nigeria Communications, Dangote Cement, and Guaranty Trust Holding all posted gains, helping to support the benchmark index, while International Breweries advanced 6.58%. In contrast, banking stocks showed weakness, with Zenith Bank and United Bank for Africa closing lower. BUA Foods, BUA Cement, and Geregu Power ended the session unchanged.

Meanwhile, mounting external headwinds threaten to weigh on market sentiment. A new 10% tariff on imports from BRICS-aligned economies, including Nigeria, is expected to take effect in the United States from the 1st of August, adding to the risks faced by the market. Looking ahead, while earnings strength continues to support valuations, the outlook for Nigerian equities could face challenges due to trade-related risks.

Wesonga is Senior Sales Manager at Pepperstone