Nigerian Exchange Market Records Mild Depreciation Amid Selective Sectoral Gains
The Nigerian Exchange (NGX) concluded the week ending May 23, 2025, on a negative note, as both the NGX All-Share Index (ASI) and Market Capitalisation experienced slight declines.
The ASI fell by 0.62%, finishing at 109,028.62 points, while Market Capitalisation decreased by 0.29%, closing at ₦68.752 trillion. This indicates a cautious sentiment among investors in light of ongoing macroeconomic concerns and portfolio rebalancing efforts. Overall, market performance was unfavorable across most indices, with only a handful of sectors demonstrating resilience.
The NGX Insurance Index increased by 0.73%, the NGX AFR Dividend Yield Index by 0.11%, the NGX Consumer Goods Index by 2.18%, and the NGX Industrial Goods Index by 0.72%. These increases were fueled by renewed interest in dividend-paying stocks and defensive positions within the consumer and industrial sectors.
In contrast, the NGX ASeM Index remained unchanged, indicating minimal activity in the alternative securities market. The overall decline was attributed to profit-taking in previously strong stocks and a diminished investor appetite in critical sectors such as banking and oil & gas. Nevertheless, the performance of the selected indices suggests that there are still pockets of investor confidence, particularly in sectors viewed as hedges against inflation and currency risks.
For sustained market resilience, stakeholders must persist in advocating for stable macroeconomic policies, enhanced fiscal coordination, and strategic support for essential growth sectors. A clear and consistent policy direction, especially regarding interest rates, inflation control, and foreign exchange management, is vital to restoring investor confidence and encouraging broader market participation.
