Investment experts at Bancorp Securities Limited, a leading investment and stockbroking services provider in Nigeria, have projected that the revitalization of the nation’s crude oil refining capacity in line with the Federal Government’s broader economic reforms could create a foundation for long-term capital market stability in 2025.
The analysts specifically noted that the NGXASI’s YTD gain at 38.53% YTD, coupled with 158.65%) sector-specific growth in energy and 32.12% industrials as of the end of 2024, suggested bullish momentum will persist in the Nigerian Exchange (NGX) trading session this week.
According to the firm’s ‘Weekly Stock Recommendation for Jan 06 to Jan 10, 2025’ sourced by our correspondent on Monday, the investment experts predicted that the equities market had the potential of benefitting from improved macroeconomic fundamentals, driven by the refining sector’s revitalization.
Even then, they expressed concern about the likely negative impacts of the surging inflation rate, volatility of the foreign exchange (FX) and uncertainties in the global economic system on the bright outlook of the local bourse.
In the advisory, they recommended that investors should focus on listed firms in oil and gas, energy infrastructure, and manufacturing, while hedging against operational risks and global oil price volatility.
On the equities market outlook for 2025, the experts projected: “The NGX is positioned for sustained growth in 2025, supported by structural reforms, resilient corporate earnings, and stable oil prices. Key drivers include financial sector recapitalization, fiscal consolidation, and infrastructure expansion.
“However, risks such as inflationary pressures (33.88% as of October 2024), naira volatility, and global economic uncertainties require cautious optimism.
“Investors are advised to focus on fundamentally strong stocks in banking, consumer goods, and industrials while remaining vigilant in the oil and gas sector amid price fluctuations. Additionally, the insurance sector offers high growth potential driven by ongoing reforms and recapitalization efforts”, they added
