MPR: 27.50%, Jan’25 Inflation Rate: 24.48%, Q4 real GDP: 3.48%
Here are the Domestic Stock Market Update For The Week Ended, Friday March 7, 2025.
Dominance of Mixed Sentiments, Amid Expectations of Corporate Earnings Reports and Profit-Taking
The domestic stock market opened on a bearish note this week, with the All-Share Index (ASI), receding by 0.34% to close at 107,455.13 points. However, investors gained N94.6 billion as the market capitalization surged forward by 0.14% to close at N67.29 trillion.
The dominance of weak investor sentiments, across market indicators continued, on Tuesday as the All-Share Index (ASI) maintained the losing streak, dropping further by 0.51% to 106,904,25 points, while Market Capitalization eased to N66.94trillion. In a reflection of mixed sentiments, number of deals – an activity measure mellowed by 9.74%. Conversely, volume and value of transactions – other activity measures – remained positive at 28.36% and 21.18% respectively.
By Wednesday, the bears retained their hold on the market, prompting a reduction of 0.44% in the index to 106,436.48, against the 106,904.25 points recorded in the preceding trading session. Similarly, Market Capitalization, another performance indicator, leveled to N66.65 trillion, from the N66. 94 trillion recorded as at Tuesday, March 4, 2024, causing investors to lose N289 billion.
The Index buckled to up to close at 106,780.72 gaining 0.32%, with total market capitalization closing green at N66.87trillion as rational investors and portfolio mangers engage in bargain hunting, next day – Thursday.
As at the close of trading on Friday, March 7, 2025, the ASI declined to 106, 539.0 points with Market Capitalization closing at N66.72 billion, shedding a further 0.23 as against Thursday’s numbers.
Nevertheless, the market breadth was positive with 34 of the listed companies gaining, against 18 losers, even as the domestic equities All-Share Index shaded 1.19% week – on – week.
FACTORS RESPONSIBLE FOR THE BEARISH TREND IN THE MARKET
Global Uncertainty – low foreign Portfolio Investment flows into the market
Implications of Donald Trump Immigration Policies on Diaspora remittances
Anticipation of Corporate Earnings Reports for Year 2024
Dividend Expectations
Anticipated Second Phase of Banking Recapitalization
Overbought Market Position
Portfolio Re-balancing
Speculative Activities of Short-term Traders and Investors
Expected Listing of Public Offers & Rights Issues by Banks
OUTLOOK FOR THE COMING WEEK
Going into the coming week, we expect a continuation of sell-down pressures on over-bought positions. Conversely, corporate actions – earnings reports and dividend announcement may halt sell-off in stocks with good earning results and impressive dividend announcements, when made public. Portfolio re-balancing ahead of full year 2024 result expectations will continue to impact market activities.
ADVICE
Consciously gain investment and financial literacy at the basic level
Participate in investment seminars, financial literacy classes and read financial books that feed the mind with knowledge
Hedge your financial information gap, by engaging sound and certified investment/financial advisers to manage your portfolio
Develop investment philosophies, that guarantee long term profitability and sustainability in the market
Mitigate your low-risk appetite by investing in Risk-Free Assets such as Eurobonds, Federal Government Bonds and Treasury Bills
Diversify your portfolio of financial assets across stocks and fixed-income securities
Focus on stocks with strong financial fundamentals, 5 years track records of earnings growth, dividend growth, return on equity and return on capital employed, while monitoring the price-earnings ratio, price-to-book value and book value per share
Stocks with low market price volatility, may suggest strong investor confidence and stability.
Christian Isaac Anyalisi,
A Chartered Stockbroker/Securities Analyst, writes from Lagos, Lagos State – Nigeria.
Email: isaacchristian2016@gmail.com
Phone: 08037080343
