- The NGX All Share Index dropped 0.32% to close at 107,781.78.
- Smart Products Plc (SMURFIT) led the gainers with a 10% price increase.
- Honeywell Flour Mills (HONYFLOUR) suffered the biggest loss, down 10%.
- The interest rate remains steady at 27.50%, as per CBN data.
- Inflation rate declines to 24.48% from a previous 34.80%.
- Treasury bill rates hold at 18% for 91-day tenors.
- The Naira trades at 1,504 per USD in the foreign exchange market.
- The Nigerian bond market remains stable, with a strong buy outlook for 2-year bonds.
The Nigerian stock market witnessed a mixed performance on February 25, 2025, as the NGX All Share Index (NGSEINDEX) closed at 107,781.78, a decline of 345.19 points (-0.32%) from the previous trading session. The trading volume stood at 362,828,409 shares, slightly below the three-month average volume of 546,143,682 shares. The NGX 30 Index also slipped by 0.24%, closing at 4,010.19. Market sentiment remained cautious as investors assessed macroeconomic conditions and corporate earnings reports. Analysts noted that despite the index’s decline, certain defensive sectors, including transportation and finance, continued to attract interest. The broader market remains sensitive to inflation trends and monetary policy decisions, which could influence future movements.
Top 5 Performers The best-performing stocks for the day included:
- SMART PRODUCTS PLC (SMURFIT): Process industries sector, stock price rose by 10% to ₦0.33.
- NIGERIAN EXCHANGE GROUP (NGXGROUP): Finance sector, gained 9.97% to close at ₦32.00.
- RED STAR EXPRESS PLC (REDSTAREX): Transportation sector, up 9.57% to ₦7.33.
- ASSOCIATED BUS COMPANY PLC (ABCTRANS): Transportation sector, climbed 8.13% to ₦1.33.
- NPF MICROFINANCE BANK PLC (NPFMCRFBK): Finance sector, increased 5.14% to ₦1.84.
The transportation and finance sectors dominated the list of gainers, reflecting growing investor confidence in logistics and financial services.
Worst 5 Performers The biggest decliners of the session were:
- HONEYWELL FLOUR MILLS (HONYFLOUR): Process industries, fell 10% to ₦11.25.
- MORISON INDUSTRIES PLC (MORISON): Health technology, dropped 9.97% to ₦3.25.
- UNIVERSITY PRESS PLC (UPL): Consumer services, lost 9.9% to ₦4.55.
- INTERNATIONAL ENERGY INSURANCE CO PLC (INTENEGINS): Finance, declined 9.75% to ₦2.13.
- OANDO PLC (OANDO): Energy minerals, down 9.72% to ₦52.00.
The energy and health technology sectors showed the weakest performance, likely influenced by macroeconomic concerns and regulatory developments.
Sectoral Performance Best-performing sectors:
- Transportation
- Process industries
- Health services
- Producer manufacturing
- Distribution services
Worst-performing sectors:
- Technology services
- Energy minerals
- Electronic technology
- Health technology
- Retail trade
Macroeconomic Indicators The Central Bank of Nigeria (CBN) maintained the monetary policy rate at 27.50%, as reported in its latest update. The inflation rate fell significantly to 24.48%, compared to 34.80% in the previous month, indicating easing price pressures in the economy. The Treasury bill rate for 91-day tenor remains at 18%, ensuring attractive short-term investment returns. The decline in inflation suggests improving economic conditions, potentially enhancing consumer purchasing power. However, analysts caution that external factors such as global commodity prices and exchange rate volatility could impact future inflation trends. Additionally, the current monetary stance by the CBN aims to strike a balance between controlling inflation and fostering economic growth through credit availability.
Foreign Exchange and Bond Market The Naira closed at ₦1,504 per USD, reflecting minor fluctuations in the foreign exchange market. The Nigerian bond market showed stability, with a strong buy rating for 2-year bonds, which recorded a YTD return of 4.21%.
Market Outlook Given the current trends, investors are likely to focus on defensive sectors such as transportation and finance while avoiding weak segments like energy and retail trade. The stable bond market, coupled with moderating inflation, presents a favorable environment for long-term investments.
Overall, the Nigerian stock market remains poised for potential recovery, contingent on macroeconomic stability and sector-specific catalysts.
