Researchers and investment analysts at Bancorp Securities Limited, one of Nigeria’s leading stockbroking and investment consulting firms, on Monday forecasted cautious trading on the Nigerian Exchange this week in view of the prevailing micro and macroeconomic indices of the broader economy.
The experts, in the firm’s ‘Weekly Stock Recommendation 25th August-29th August 2025’ Note shared with our correspondent specifically hinged their projection on the tendency that investors would continue to refocus their portfolios on blue chip stocks and interim dividend expectatations.
They predicted: “We expect a cautious market this week, as investors continue to reposition their portfolios around Tier-1 earnings and interim dividend expectations. While selective demand may surface in consumer goods and dividend-paying stocks, persistent pressure on large-cap names and the lack of fresh positive triggers could keep overall sentiment subdued.”
The analysts recalled that last week, the local bourse extended its downward trend for the second consecutive week, with sell-offs recorded across all sectoral indexes except the consumer goods sector, thereby leading the NGX All-Share Index (NGX-ASI) to fall by 2.51% week-on-week to close at 141,004.14 points.
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As a result, the equities market’s year-to-date (YTD) return moderated to 37.00%, while market capitalisation shed N2.29 trillion to settle at NGN89.21 trillion even as the trading activity reflected mixed sentiment.
The analysts further clarified: “Total volume traded declined sharply by 44.27% to 4.77 billion units, while total value traded rose by 7.50% to NGN107 billion, exchanged across 152,956 deals. From a technical standpoint, the weekly up/down (UD) volume ratio appreciated to 1.49x from 1.00x in the prior week, signalling stronger buying pressure relative to selling despite the overall index decline.
“Similarly, the TRIN (Trader’s Index) dropped to 0.59x from 1.12x, pointing to underlying accumulation as advancing stocks attracted heavier volumes than decliners. However, these technical signals were not strong enough to offset broad weakness across sectors, implying that investors are adopting a selective buying approach rather than broad-based accumulation”, they added.
