Lagos — Nigerian equities remained subdued, closing lower in the previous session, with the NGX All Share Index falling by 0.43%, nearing the 106,000-point mark. Market participants could stay cautious, as 10 out of 19 sectors ended in negative territory.
The health technology sector saw a significant decline of 3.78%, driven by a drop in Mercure Industries Plc shares. While the financial sector showed mixed results, Guaranty Trust Holding (+0.5%) and Ecobank (+4.63%) saw gains, but Zenith Bank (-1.04%) and Fidelity Bank (-2.57%) posted losses.
Contributing to the market’s negative performance, Nigeria’s oil production dropped by around 5% in February, averaging 1.465 million barrels per day, falling short of OPEC’s target. Ongoing disruptions at key terminals, along with theft and pipeline damage, continue to pressure the oil sector.
These production challenges erode investor confidence, amplifying the negative sentiment across the broader market. The outlook for oil-linked stocks remains quite bearish in the near term.
On a positive note, the growing trade relations with the UK could provide support for the Nigerian market, with the UK viewing Nigeria as a high-growth market, particularly in sectors such as technology and creative industries.
If investment in these sectors increases, it could diversify Nigeria’s economy, providing long-term growth potential.
*Daniel Wesonga, Senior Sales Manager at Pepperstone
