By Daniel Wesonga

Nigerian equities could continue consolidating within a narrow range, with the NGX All Share Index hovering near the key level of 106,000 points. This price action reflects market participants’ cautious sentiment, as they await fresh catalysts and developments. On Friday, sectoral performance was mixed, while the NGX benchmark closed up 0.23%. Commercial services led with a 6.08% increase, followed by electronic technology (+5.97%) and transportation (+5.65%). Conversely, the financial, process industries, and energy minerals sectors underperformed. Blue-chip stocks such as BUA Foods, Dangote Cement, and Aradel saw no change, while Nigerian Breweries and International Breweries gained 6.98% and 8.40%, respectively.

At the same time, the developments of the oil market impacted domestic investor sentiment. With OPEC+ set to increase production by up to 2.2 million barrels per day by November, oil prices could come under more pressure while they are already weakened by subdued global demand. Moreover, the Nigerian crude market has shown signs of weakness, with unsold cargoes and a lack of enthusiasm from buyers, reflecting broader concerns over price stability. Given Nigeria’s reliance on oil for revenue, this volatility could weigh on the equity market, leading to more cautious positioning by investors.

However, the resilience in consumer stocks and positive performance in certain sectors like commercial services and transportation provide some support. The outlook for Nigerian equities will depend on oil price stability and the broader economic environment, with potential for upward movement if the oil market stabilizes or recovers.

Wesonga is Senior Sales Manager at Pepperstone