May13, 2025/CSL Research

April 2025 in Retrospect

• The Nigerian equities market posted a modest rebound in April 2025, reversing the decline seen in the previous month. The recovery was fueled by strong Q1 2025 corporate earnings and the successful listing of Legend Internet Plc, an internet service provider whose stock has surged by +45.65% since debut. Investor sentiment was further lifted by notable gains in key stocks. WAPCO rallied +13.91%, driven by its attractive dividend payout, while ZENITHBANK and GTCO advanced by +10.58% and +6.20%, respectively. Market breadth closed slightly positive at 1.04x, with 49 gainers and 47 losers, indicating a relatively balanced market. As a result, the NGX All-Share Index edged up by 0.12% month-on-month (MoM) to close at 105,800.90 points, bringing the year-to-date (YTD) return to +2.79%.
• Market activity, however, softened significantly. The average daily volume fell by -43.80% MoM to 436.0 million units, while the average daily value declined by -54.50% MoM to ₦12.7 billion, indicating a more cautious trading stance among market participants.

May 2025 in Prospect

• After hitting a low of 103,852 points on April 16, 2025, the NGX All-Share Index has rebounded strongly, surpassing the 106,000-point mark. This upward movement reinforces the prevailing positive sentiment that has supported the equities market in recent weeks.
• The continued upward trend in large- and mid-cap stocks in May 2025 is expected to sustain investor confidence and support short-term market stability. Investor interest is likely to remain focused on stocks with interim dividend announcements driving cherry-picking and bargain-hunting activities.
• However, elevated yields in the fixed income market pose a downside risk to the equities rally, as institutional investors rebalance their portfolios in response to shifting market conditions. Additionally, the recent decline in global crude oil prices—driven by concerns over a potential global economic slowdown—remains a headwind for broader market sentiment while the bias around global crude oil oversupply might continue to hinder foreign investor sentiments in the domestic equities market in the near term.

Kindly click on the below link to download the full report.

​​​CSL Nigeria Monthly Stock Picks – May 2025.pdf​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​