Macroeconomic Stability, Investor Confidence Fuel Nigerian Stock Market Surge — CIS

The President and Chairman of the Council of the Chartered Institute of Stockbrokers (CIS), Oluropo Dada, has attributed the recent rally on the Nigerian Exchange (NGX) to a combination of macroeconomic reforms, stable foreign exchange policies, and strong corporate earnings. In a statement released to The PUNCH, Dada praised the Central Bank of Nigeria’s efforts to stabilise the naira, clear FX backlogs, and tighten monetary policies, all of which have helped restore confidence in the market.

Dada highlighted that the rally is being further supported by foreign portfolio inflows driven by undervalued equities and improved economic indicators. He noted that several blue-chip companies—especially in banking, telecoms, and consumer goods—posted robust Q1 2025 results due to forex gains and cost-cutting strategies. This financial performance has reinforced investor confidence, particularly among domestic institutional investors such as pension fund administrators.

The CIS chairman emphasised that the rally is structurally underpinned and likely to continue if macroeconomic reforms are consistently implemented. However, he warned that external shocks, policy missteps, or profit-taking activities could lead to short-term market corrections. He urged investors to remain realistic and grounded in economic fundamentals while navigating a highly sensitive and reactive market environment.

Dada advised investors to diversify their portfolios across asset classes—including equities, fixed income, and foreign-denominated instruments—to hedge against volatility. He identified sectors such as consumer staples, healthcare, agriculture, and large-cap banks as more resilient in times of market downturns, thanks to their essential services and stable demand.

While remaining cautiously optimistic about the market’s medium-term outlook, Dada warned against complacency. He noted that market sentiment plays a significant role in the rally, making it important for investors to monitor macroeconomic data, corporate earnings, and central bank policies closely. He concluded by urging investors to take profits when necessary, rebalance portfolios, and consult financial advisors before making investment decisions.

Sourc: Punch