Lagos — Nigerian equities remain near recent highs, with the NGX All Share Index consolidating within the 108,000–108,500 range as market participants await Q4 2024 GDP data.
In Q3-2024, the economy expanded by 3.46% year-on-year, the fastest since Q4-2023, driven by a 3.37% rise in the non-oil sector.
Services led with 5.19% growth, contributing 53.58% of GDP, while financial and insurance services surged 30.8%. The oil sector expanded 5.17% as crude production rose to 1.47 million bpd.
While a strong GDP print could support sentiment, inflationary pressures and policy uncertainties remain key risks.
Market breadth was weak in the last session, with eight sectors closing lower, five remaining flat, and only five in positive territory.
Dangote Cement, Bua Foods, MTN Nigeria Communications, and BUA Cement were unchanged. Guaranty Trust Holding gained 1.04%, while Zenith Bank, Access Holdings, and FBN Holdings declined. Caution continues to dominate the market.
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has warned that U.S. tariff hikes could worsen inflation, already at 24.48%, impacting food prices, fuel costs, and borrowing rates. Rising costs may pressure consumer demand and industrial margins, while financials also face risks.
*Daniel Wesonga, Senior Sales Manager at Pepperstone
