In the bustling world of Nigeria’s stock market, investors had reason to celebrate as the trading week ended on Friday, January 24, with a significant gain of ₦206 billion.
Despite a mix of ups and downs throughout the week, the market managed to close on a positive note, boosting the year-to-date (YtD) return to 0.65 per cent.
While shares in consumer goods, insurance, and oil & gas sectors were mostly sold, investors showed a strong interest in banking and industrial stocks.
By the end of the week, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) increased from 102,353.68 points to 103,598.3 points, while market capitalisation grew from ₦62.851 trillion to ₦63.645 trillion.
Analysts reported adjustments to their portfolios, shifting investments from the brewing sector to other industries.
They highlighted a cautious approach, focusing on long-term value creation and careful market evaluation.
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Looking ahead, Managing Director and CEO of Arthur Stevens Management Limited, Olatunde Omolegbe, has projected a 39 per cent return on the ASI in 2025.
He expects greater investor interest in equities as fixed-income yields decline, influenced by the Central Bank of Nigeria’s (CBN) more accommodative monetary policies.
Despite concerns over inflation and exchange rate fluctuations, Omolegbe remains optimistic about the banking, consumer goods, and industrial sectors.
He also pointed out that stable policies could attract more foreign investment.
In the fixed income market, he advised focusing on long-term, high-yield instruments, anticipating a fall in interest rates in the medium term.
Investors are already positioning themselves ahead of 2024 full-year results and dividend announcements.