Investment analysts at Bancorp Securities Limited, a leading stock-broking and investment consulting firm in Nigeria, have predicted that the nation’s equities market would maintain a positive but selective tone this week.
The experts, in the firm’s ‘Weekly Stock Recommendation 13th-17th April 2025’ circulated to our correspondent on Monday, hinged their forecast on the improving sentiment driven by nation’s re-entry into the FTSE Russell Frontier Market Index and declining Treasury bill rates supports investor participation, particularly in fundamentally sound offering attractive dividend yields.
They recalled that last week, Nigeria’s macroeconomic environment reflected a mix of improving structural conditions and emerging external pressures, as fiscal data pointed to continued gains in revenue mobilisation despite near-term moderation, while capital market developments signalled strengthening investor confidence even as global uncertainties begin on outlook
The analysts noted that in view of the development, the local bourse extended its upward trend into the second consecutive week with the NGX ASI advancing by 1.03% week-to-date to settle at 203,770.43 points.
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According to the researchers, the market capitalisation increased more strongly by 1.05% to N131.16 trillion, translating to an increase of NGN1.36 trillion in investors’ wealth, adding that the divergence between the rate of increase in the ASI and the market capitalization is attributable to the supplementary listing of ACCESSCORP shares during the week.
On the outlook for the equities markets, the analysts projected: “We expect the market to sustain a positive but still selective tone in the coming sessions, as improving sentiment driven by Nigeria’s re-entry into the FTSE Russell Frontier Market Index and declining Treasury bill yields continues to support investor participation.
“The moderation in Treasury bill rates, particularly across the 182-day and 364-day tenors, is likely to drive further rotation into equities, with the banking sector expected to remain the primary beneficiary as investors focus on dividend yields and ongoing earnings releases.
“The market remains supported by liquidity and improving sentiment, although positioning is becoming more disciplined, with investors focusing on fundamentally sound stocks and companies with solid earnings performance.
“Activity is likely to remain concentrated in large-cap and fundamentally strong stocks, while profit-taking may continue to emerge across mid- and small-cap names following recent gains. At the same time, bargain hunting in low-cap stocks may persist, as investors take advantage of price corrections and reposition selectively within the broader market”, they added.
