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- NGX Rises 0.48% as strategic partnerships boost market sentiment.
Nigerian equities closed the week on a positive note. It ended Friday with the NGX All-Share Index gaining 0.48% to settle at 141,004.14 points. The broad-based rally was led by significant gains in the electronic technology, consumer durables, and health technology sectors.
Sector Performance: Gainers and Laggards
Market activity showcased a mixed but overall optimistic picture. Top performers for the session included BUA Foods, Guaranty Trust Holding Company (GTCO), Zenith Bank, and International Breweries. In contrast, Lafarge Africa and Stanbic IBTC Holdings closed lower. Heavyweights MTN Nigeria, Dangote Cement, and Aradel Holdings ended the day unchanged.
Japan’s $190m Renewable Energy Loan Boosts Outlook
The market’s stabilization was bolstered by positive developments on the international front. At the Ninth Tokyo International Conference on African Development (TICAD 9), Nigeria secured a major $190 million renewable energy loan from the Japan International Cooperation Agency (JICA). This investment is earmarked for critical grid expansions, new substations, and off-grid solutions, which analysts believe will significantly benefit the utilities and industrial sectors on the NGX.
FERMA-China Road Deal to Support Construction Stocks
In a separate move to enhance infrastructure, the Federal Roads Maintenance Agency (FERMA) signed a two-year strategic agreement with China’s Global Cooperation Promotion Research Centre (GCPRC). This partnership, focused on technology transfer, capacity building, and modernizing Nigeria’s road networks, is expected to provide a tailwind for companies in the construction, materials, and engineering services sectors.
All Eyes on Q2 2024 GDP Data Release
The key immediate catalyst for the market is the upcoming release of Nigeria’s Q2 2024 GDP figures. In the previous quarter (Q1 2024), the economy grew by 3.13% year-on-year, driven largely by the services and industrial sectors. A stronger-than-expected reading could further fuel rallies in industrial and consumer stocks, while a weaker output may pressure cyclical sectors like manufacturing and oil.
