Investment experts at Bancorp Securities Limited, a frontline investment research and consulting firm in Nigeria, on Monday projected that investor focus in the Nigerian Exchange this week was expected to remain on earnings positioning, with strength expected in consumer, industrial, and well-capitalized banking stocks, while oil and gas may benefit from geopolitical tailwinds.
The analysts, in the firm’s ‘Weekly Stock Recommendation: 16th-19th June 2025’ Note circulated to our correspondent also predicted that as Nigeria’s Headline inflation for May 2025 was scheduled for release today, barring any shock the CPI data will unlikely disrupt the current market tone, maintaining that overall, selective buying in the local bourse is expected for the week.
They recalled that in the previous week, global institutions maintained cautious optimism about Nigeria’s economic trajectory, even as external risks such as global trade tensions and domestic cost pressures persisted.
According to the analysts, the data released by the National Bureau of Statistics (NBS) on Nigeria’s merchandize trade for the first quarter of this year, the import data highlighted continued dependence on Asian and European markets for essential goods, underscoring Nigeria’s structural exposure to foreign supply chains.
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On the capital market overview in the week under review, the firm’s researchers noted that despite the shortened three-day trading week due to the public holiday, the Nigerian equities market sustained its upward momentum, with the NGX-ASI rising by 0.71% week-on-week to close at 115,429.54 points.
Similarly, the market capitalization also climbed by N512.5 billion to peak at N72.79 trillion but then trading activity moderated during the week as total volume and value declined by 36.00% and 33.18%, respectively, to 2.06 million units exchanged at N51.02 billion across 65,016 deals.
Based on their critical appraisal of the current domestic and global micro and macroeconomic developments and their implications for the Nigerian Exchange, the Bancorp Securities’ experts maintained that during this week’s trading, investor focus is expected to “remain on earnings positioning, with strength expected in consumer, industrial, and well-capitalized banking stocks, while oil and gas may benefit from geopolitical tailwinds. Overall, selective buying is expected to persist.”
