Investment researchers at Bancorp Securities Limited, a leading investment research and consulting services firm in Nigeria, have projected that trading on the Nigerian Exchange (NGX) this week will remain positive as FY 2025 earnings releases and dividend declarations sustain investor interest in the local bourse.
The experts, in the firm’s ‘Weekly Stock Recommendation 20th-24th April 2025’ Note circulated to our correspondent on Monday, advised that based on the bright outlook of the equities market, investor’s positioning should remain focused on fundamentally strong, counters across Banking, Telecoms, and Oil and Gas.
They further predicted that also, profit-taking may emerge intermittently, particularly in stocks that have recorded sharp gains in recent sessions.
The analysts recalled that last week, Nigeria’s macroeconomic conditions pointed to a slight loss of alignment across key indicators as inflation edged higher for the first time in nearly a year, while public debt continued to expand, reinforcing underlying fiscal pressure.
- Advertisement -
In contrast, they noted that the financial markets strengthened, supported by improving liquidity and more aggressive investor positioning.
Specifically, the researchers noted that in the week under review, the equities market extended its bullish momentum for the third consecutive week, delivering its strongest performance since mid-February 2026.
An analysis of the performance reflected that the NGX All-Share Index advanced sharply by 6.57% week-on-week to close at 217,167.57 points, lifting year-to-date returns to 39.53% from 30.96% in the prior week, while the market capitalisation increased by 6.60% to NGN139.83 trillion, translating to a significant gain in investor wealth.
On the outlook for the equities markets this week, they forecasted: “We expect the market to maintain its positive momentum, supported by strong liquidity conditions, improved investor participation, and continued positioning in fundamentally sound counters. The sharp increase in traded value relative to volume suggests that institutional flows remain a key driver of the rally, particularly in large-cap and high-quality names.
“However, the strength of the recent advance, combined with emerging macro pressures, suggests that the pace of gains may begin to moderate. The reacceleration in inflation introduces a potential constraint to further yield compression in the fixed income market, which has been a key driver of equity inflows. As a result, the liquidity-driven component of the rally may gradually ease.
“Going forward, market performance is likely to become more selective. Banking, telecoms, and energy stocks are expected to remain in focus, supported by improved earnings and strong balance sheet position. At the same time, profit-taking may emerge intermittently, particularly in stocks that have recorded sharp gains in recent sessions”, the firm’s analysts added.
