February 24, 2025/CSL Research
Equities Market Preview & Review
The Nigerian equities market ended the week on a positive note, with the All-Share Index (ASI) rising by 41 basis points (bps) week-on-week (w/w) to close at 108,497.40 points. Investor sentiment remained mixed throughout the week, with the overall weekly gain largely driven by Wednesday’s market rally, despite bearish performances on other trading days. As a result, the Year-to-Date (YTD) return of the index improved to 5.41%.
Stocks such as BUAFOODS (+11.91% w/w), DANGSUGAR (+15.00% w/w), and SOVRENINS (+11.86% w/w) contributed significantly to the week’s positive momentum, with their gains offsetting losses in stocks like UNIONDIC (-25.00% w/w), IKEJAHOTEL (-21.43% w/w), and UPDC (-17.99% w/w). Market breadth weakened in the week, as only 28 stocks advanced, compared to 65 in the previous week while 58 stocks declined, higher than the 31 recorded in the prior week. In terms of trading activities, ACCESSCORP led by volume and value.
Sectoral performance was also mixed, with the Consumer Goods index leading the gainers (NGXCNSMRGDS: +6.55% w/w), followed by the Insurance (NGXINS: +1.47% w/w), and the Industrial Goods (NGXINDUSTR: +10.36% w/w) indices. However, the Banking (NGXBNK: -3.22% w/w), and Oil & Gas (NGXOILGAS: -2.87% w/w) indices closed in the red.
In corporate developments, VFD Group strengthened its commitment to VFD Microfinance Bank Limited (VBank) with a ₦5 billion investment. Honeywell Flour Mill Plc notified the investing public of the passed resolutions at its 2024 Annual General Meeting while Haldane McCall Plc issued a notice on the appointment of a new Finance Director.
Market sentiment is expected to remain mixed in the near term, as bargain hunting continues alongside intermittent profit-taking by investors. However, the anticipated inflow of full-year earnings reports could serve as fresh catalysts in the coming trading sessions, strengthening positive market sentiment, and driving further gains in the equities market.
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CSL Nigeria Weekly – 24 February 2025.pdf
