Written by SpringNewsNG Media Limited, March 17, 2025.

The Nigerian stock market experienced mixed sentiments last week as portfolio reshuffling led to a downturn in major market indicators. This marks the third consecutive week of decline, driven by selloffs in both mid and highly capitalized companies across various sectors.

Market Performance Overview

Analysts have pointed out that numerous companies have been notifying the market of upcoming board meetings to approve the 2024 audited financial statements and declare dividends for shareholders. This development is expected to positively impact the market if these financial results exceed expectations.

Key Market Movements

The selloff in MTN Nigeria resulted in a 4.2% price drop, Oando declined by 7.1%, and UBA fell by 3.6%. Consequently, the All-Share Index (ASI) fell by 0.5% Week-on-Week (W/W), closing at 105,955.13 basis points from 105,538.60 basis points the previous week.

Similarly, market capitalization dropped by over N366 billion, closing at N66.351 trillion from N66.717 trillion. Month-to-Date (MtD) and Year-to-Date (YtD) returns moderated to -1.7% and 2.9%, respectively. However, trading activity was robust, with total volume and value increasing by 81.6% W/W and 34.9% W/W, respectively.

Sectoral Performance

• Oil & Gas Index: Declined by 1.2%
• Banking Index: Declined by 0.4%
• Industrial Goods Index: Declined by 0.2%
• Insurance Index: Advanced by 0.9%
• Consumer Goods Index: Remained unchanged

Analysts’ Outlook

Cordros Research analysts expect market sentiment to be influenced by the February inflation report and the direction of yields in the fixed-income market. They also foresee potential bargain-hunting in banking stocks due to recent selloffs that present attractive re-entry opportunities.

InvestData Consulting analysts anticipate mixed sentiments driven by profit-taking, portfolio reshuffling, and bargain hunting. They highlight the potential for gains as more earnings reports and dividend announcements emerge. Moreover, sector rotation and portfolio rebalancing are expected to continue as investors leverage price corrections to buy into value stocks.

Given the ongoing global trade warfare and its impact on various economies, analysts urge economic managers and governments to rethink fiscal and monetary policies to sustain growth. The current volatility and pullbacks offer opportunities for value investment and portfolio rebalancing.