Investment experts at Bancorp Securities Limited, one of Nigeria’s investment research and stockbroking firms, have projected that trading in the Nigerian Exchange this week would be characterized by positive momentum, though a little bit moderated, when compared with last week’s trading sessions’ trend.
In the firm’s ‘Weekly Stock Recommendation 30th June-4th July 2025’ circulated to our correspondent on Monday, the researchers hinged their forecast on the local bourse’s performance outlook on prevailing micro and macroeconomic factors in the economy.
The analysts projected: “The positive market momentum is likely to extend into the new week, though at a more tempered pace. Improved breadth and stronger volume behind advancers suggest continued buying interest, particularly in banking and consumer goods, ahead of half-year earnings.
“However, after five straight weeks of gains, some profit-taking or sector rotation may emerge, with investor focus shifting toward fundamentally strong and dividend-paying stocks”, they added.
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The Bancorp Securities’ researchers recalled that last week, bullish trend continued at the equities market for the fifth consecutive week, as the NGX ASI grew by 1.57% WTD to close at 119,995.76 points.
In addition, they noted that as a result, the year-to-date (YTD) performance improved to 16.58%, up from 14.8% the prior week and added that the gains were broadly driven by sustained buying interest across all sector indices, except Oil and Gas, raising the market capitalization by N1.75 trillion to settle at N74.53 trillion.
According to the experts, last week Nigeria’s macroeconomic narrative was driven by a landmark fiscal reform and stronger external sector indicators with the signing by President Tinubu four major tax bills, replacing FIRS with the autonomous Nigeria Revenue Service and unifying over 70 fragmented tax laws.
The key provisions of the tax laws, which will become effective January 2026 and aimed at simplifying compliance, ease household burdens, and attract investment, include a PAYE exemption for individuals earning below N1 million annually, zero VAT on essentials such as food, healthcare, education, and rent, and a full CIT exemption for small businesses earning under NGN50 million.
This fiscal initiative was complemented with Nigeria’s posting of a current account surplus of $3.73 billion in Q1 2025, up from $3.69 billion a year earlier, driven by a 30% rise in non-oil exports ($2.66 billion) and reduced non-oil imports ($6.77 billion), even as the nation’s total exports climbed to $13.91 billion, while imports eased to $9.75 billion.
The Central Bank of Nigeria (CBN) reported that despite higher deficits in service and income accounts, the surplus highlighted growing external resilience and improved trade competitiveness under foreign exchange reforms.
