Stocks gain N206bn in one week

…Arthur Stevens CEO projects 39% returns in 2025

In the trading week ended Friday January 24, investors in Nigeria’s stock market gained about N206billion as the market rose by 1.22 percent.

Despite mixed trading sessions in the review week, the market closed in the green zone, pushing the returns year-to-date (YtD) back to the positive region of +0.65percent.

While consumer goods, insurance, oil & gas stocks were mostly sold, investors bought banking and industrial stocks in the review trading week.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation increased week-on-week (WoW) from 102,353.68 points and N62.851trillion respectively to 103,598.3 points and N63.645 trillion.

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“This week, we adjusted our portfolio by reallocating our holdings in the brewing sector to other industries. This strategic shift reflects our cautious approach as we closely evaluate performance trends in the brewing sector.

“Moving forward, we will actively monitor market conditions to identify favourable entry points that align with our investment objectives. Our strategy remains prioritising both risk management and long-term value creation,” Coronation research analysts said in their January 24 note on their Model Equity Portfolio.

Meanwhile, Olatunde Omolegbe, managing director/ CEO, Arthur Stevens Management Limited has projected 39 percent return on the All-Share Index (ASI) in 2025.

“We anticipate a shift toward equities as fixed-income yields decline, particularly as the CBN adopts a more accommodative stance. Despite concerns around exchange rate volatility and inflation, conservative sectors such as banking, consumer goods, and industrials are expected to perform well,” Omolegbe said.

In a recent market review and outlook, the CEO of Arthur Stevens Management Limited said the projected 39 percent return in 2025 will be driven by ongoing bank recapitalisation, fresh equity listings, and anticipated monetary policy easing by the Central Bank of Nigeria (CBN).

He noted further that the Nigerian stock market is set for a bullish 2025 “as investors position ahead of 2024 FY results and dividend declarations, especially in the banking sector”.

“However, market performance will depend on key factors, including economic growth trajectory, monetary policy direction, and corporate earnings performance,” he further said.

“The recapitalisation process is expected to boost investor confidence, while new listings like the Dangote Refinery will enhance market liquidity.

“Nigeria’s relative market attractiveness, if supported by stable policies, could lead to increased foreign portfolio inflows (FPI),” he said at the market review and outlook on Thursday themed “in-depth evaluation of the capital market in 2024 and prognosis for 2025”.

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“We expect inflation to slow on it’s uptick, which might concurrently lead to a positive impact on the companies in the industrial, consumer goods sector and large capital base companies in the financial sector. We will therefore look out for increased exposure to companies in these sectors.

“In the Fixed Income space, we will aggressively

position with long dated instruments with high

yield, in the hope that high interest rate will start to

drop in the medium term,” Omolegbe said.