Cautious Sentiment Lingers As Equities Market Dips By N208bn

The Nigerian equities market closed bearish for the second week in a row, with the overall capitalisation declined by N208 billion for the week.

The NGX All Share Index (ASI) declined by 0.32 per cent week-on-week to close at 104,233.81, its lowest level in four weeks. Also, the market capitalisation reflected the bearish mood, dipping by N208 billion to close at N65.499 trillion.

Despite ongoing dividend announcements and corporate disclosures, investor appetite remained subdued, suggesting that market participants are more focused on macroeconomic signals than company-level news.

The 90-day pause on US tariffs offered some relief globally, but it failed to spark a meaningful rally on Nigerian equities. Instead, profit-taking and portfolio rebalancing dominated trading as investors rotated out of high-flyers and re-entered defensive counters.

However, a combination of dividend markdowns and bearish sentiments in Guaranty Trust Holding Company (GTCO), Zenith Bank and United Bank for Africa (UBA) during the week, contributed largely to the index’s negative outturn.

The market breadth for the week was negative as 31 equities appreciated in price, 44 equities depreciated in price, while 72 equities remained unchanged. Abbey Mortgage Bank led the gainers table by 46.17 per cent to close at N8.96, per share. Nigerian Breweries followed with a gain of 13.13 per cent to close at N36.20, while Associated Bus Company went up by 12.70 per cent to close to N1.42, per share.
On the other side, GTCO led the decliners table by 13.00 per cent to close at N59.00, per share. Zenith

Bank followed with a loss of 11.91 per cent to close at N44.00, while DAAR Communications declined by 11.11 per cent to close at 56 kobo, per share.

Overall, a total turnover of 1.525 billion shares worth N43.006 billion in 51,156 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 2.094 billion shares valued at N52.967 billion that exchanged hands previous week in 64,612 deals.

Looking ahead, analysts at Cowry Assets Management Limited stated that “the short-term outlook for the market remains cautious. All eyes are now on the March CPI data and the Q1 2025 macroeconomic report, which are expected to offer more clarity on the direction of the economy and set the tone for risk sentiment.

“The market is currently sitting in oversold territory, which may provide a technical basis for a short-term rebound.”

The research firm noted that sustained recovery will likely depend on improvements in economic indicators, policy clarity, and fresh triggers from corporate earnings, saying “until then, we expect continued sector rotation, with investors favouring value names and defensive plays with strong fundamentals and resilient earnings power.

“For savvy investors, this dip could be a buying opportunity, particularly in counters with robust dividend yields, solid balance sheets, and positive technical setups.”