Lagos — Nigerian stocks rebounded, attempting to break recent highs, with the NGX All Share Index closing 0.85% higher on Monday at 109,953. Gains were led by the process industries sector, which rose 4.10%, supported by strength in energy minerals (+3.07%), transportation (+2.91%), and consumer non-durables (+0.50%).
Market breadth, however, remained neutral, seven sectors advanced, seven declined, and six ended flat, reflecting a measured stance among investors. Standout performers included Aradel, up 9.98%, BUA Foods (+5.26%), Zenith Bank (+1.79%), and International Breweries (+2.15%), while weakness in distribution services (-1.90%), producer manufacturing (-1.66%), and technology services (-1.66%) exerted a drag on the broader market.
The rally coincides with renewed foreign engagement in Nigeria’s economy. A new three-year strategic partnership with China aims to deepen cooperation across infrastructure, culture, and trade, reinforcing Beijing’s wider ambitions across Africa. Simultaneously, Türkiye has announced plans to expand its trade volume with Nigeria to USD 5 billion.
Meanwhile, the launch of a dedicated air corridor as part of the African Continental Free Trade Area is expected to reduce export costs and improve access to regional markets.
While investor caution remains, strengthening trade frameworks and expanding international partnerships provide structural support to the market.
The outlook for equities is cautiously optimistic, driven by stabilising macroeconomic fundamentals and increased external engagement.
*Daniel Wesonga, Senior Sales Manager at Pepperstone
