Nigerian equities showed fading momentum on Thursday, with the NGX All Share Index down 0.34% to 145,367.03 points.
Market weakness was broad, as 8 sectors closed lower and 5 remained flat. Gains were seen in consumer durables, electronic technology, consumer non-durables, retail trade, and non-energy minerals, while financials, transportation, and energy minerals lagged.
Challenges in the oil sector may continue to weigh on investor sentiment. The government reported a shortfall in oil revenue, with average crude production and prices below budgeted levels, even as gross revenue grew. The Energy sector is likely to face continued pressure from these shortfalls.
Despite this weakness, the broader economy shows potential signs of stabilisation. Finance Minister Wale Edun pointed to a Q1 2025 trade surplus of over USD 4 billion, stable exchange rates, and rising reserves.
Key Measures have created fiscal space, which supports investment and state-level capital expenditure. These developments could provide some support to equities as public spending and capital projects may boost demand and corporate earnings.
