Nigeria’s stock market’s recent progress slowed as the NGX All Share Index approached its recent highs.
As a result, the market could be exposed to profit-taking. The 120,000-point mark could continue to serve as a critical support level, mitigating downside risks.
Sectoral performance remained mostly positive, however.
Nine sectors advanced, led by commercial services, consumer durables, and technology services, while five, including electronic technology, producer manufacturing, transportation, non-energy minerals, and process industries, closed in negative territory during the previous session.
At the individual stock level, investor sentiment appears cautious. Blue-chip names such as BUA Foods, MTN Nigeria Communications, Dangote Cement, and Geregu Power remained flat, whereas BUA Cement, Zenith Bank, Nigerian Breweries, and United Bank for Africa recorded declines. Conversely, Guaranty Trust Holding, International Breweries, and Aradel delivered solid gains.
The market could remain sensitive to new economic data releases. This week, the GDP growth figures could affect sentiment and could leave investors cautious before their release. The market could also remain attentive to the development around US trade policies, as increased trade tensions could affect risk appetite.
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