Nigerian equities opened lower on Tuesday, relinquishing part of the gains seen at the start of the week.
Despite the weaker open in the NGX All-Share Index, the index remains on a strong momentum and could return to the upside.
The market recorded mixed performances among its largest stocks and saw strong performances among the likes of Honeywell Flour Mills and International Breweries but significant losses from Transcorp and Zenith Ban
However, the market could find support in domestic developments. As such, Aliko Dangote’s proposed deep-seaport project at Olokola in Ogun State, aimed at easing structural trade bottlenecks and expanding export channels for petrochemicals, LNG and fertilisers, could act as a long-term driver for logistics and infrastructure-related equities.
Looking ahead, market participants await the imminent release of Nigeria’s key economic data, including the inflation report and first-quarter GDP figures. Nigeria’s annual inflation rate eased for a second month to 22.97% in May, from 23.71% in April. While the improvement provides some relief for policymakers, inflation remains a persistent constraint.
Meanwhile, GDP growth rose to 3.84% in Q4 2024, led by a 5.37% expansion in services. If Q1 data confirms continued momentum, it could reinforce risk appetite and support further gains in the market.
