Investment experts at Bancorp Securities Limited, one of the stockbroking investment consultancy services providers in Nigeria, have predicted that trading in the Nigerian Exchange (NGX) this week will be characterized by mixed trend in view of the prevailing micro and macroeconomic indices of the nation’s economy.
The experts, in the firm’s ‘Weekly Stock Recommendation for July 14th-18 July 2025’ Note circulated to our correspondent on Monday, projected that there would be a potential rebound in the Oil and Gas Index, alongside a sustained bullish trend in financial stocks, as investors continue to rotate into assets offering attractive returns.
The analysts recalled that last week, the Nigerian equities market maintained a broad-based rally, closing higher in all trading session as investor sentiment grew more positive following the sharp decline in fixed-income yields and the unmet demand at the NT-bills auction, which redirected liquidity into the equities market.
According to them, this shift in funds led to notable buying interest, especially in financial stocks (banking and insurance sectors) even as the NGX All-Share Index (ASI) increased by 4.27% week-on-week to settle at 126,151.04 points, while market capitalisation rose by N3.36 trillion to close at N79.80 trillion.
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They attributed the difference between the index performance and market capitalisation mainly to the ongoing public offer by Guaranty Trust Holding Company Plc, involving 2.29 billion ordinary shares at N70.00 each. Despite the strong overall index, trading activity was slightly tempered.
The Bancorp Securities’ experts stated on the Outlook and Implications for the Economy and Markets this week that recent developments suggested that Nigeria was shifting toward a more realistic and results-driven approach to managing the economy.
They further noted that the possible sale of state-owned refineries signalled a willingness to cut losses on inefficient assets and refocus public resources on more productive areas, adding that if implemented, this could improve fiscal discipline and open the downstream oil sector to more efficient private operators.
At the same time, the experts stated $747 million syndicated loan secured for the Lagos–Calabar Coastal Highway reflected growing investor confidence in Nigeria’s infrastructure plans and creditworthiness.
The analysts further projected: “Over the long term, such projects can boost economic activity by improving trade routes, logistics, and industrial growth along the coast. However, short-term risks remain. Oil production continues to lag below 1.5mbpd, well under the 2025 budget assumption of 2.06mbpd, raising concerns about revenue shortfalls and pressure on external reserves.
“As NNPC itself targets 2.0mbpd only by 2027, expectations for near-term oil earnings may need to be revised downward. Overall, while these policy shifts are promising, their full impact will take time. In the interim, Nigeria’s economic outlook will depend heavily on improved fiscal implementation, stable oil production, and continued access to external financing”, they added.
On the outlook for equities markets, the firm’s researchers maintained that “as the market awaits the release of headline inflation figures this week, we anticipate a slight moderation in the inflation rate. On the equities front, we expect a potential rebound in the Oil and Gas Index, alongside a sustained bullish trend in financial stocks, as investors continue to rotate into assets offering attractive returns.”
