Analysts at CardinalStone have projected an optimistic outlook for consumer goods stocks throughout February 2025, amid a series of financial statements released in late January and early February.
This assessment was detailed in their monthly equity research report published on February 3, 2025, which summarized January’s market activity and offered insights for February.
The report emphasizes that the direction of the market in February will be heavily influenced by investor reactions to the ongoing release of FY’24 financial results, which could positively impact consumer goods stocks.
Analysts believe these stocks may experience favorable sentiments, strengthened by a relatively robust Q4 2024 performance and supported by Naira stability during the quarter.
The report stated: “In our view, certain consumer goods counters may see positive momentum, driven by a relatively stronger Q4’24 performance and Naira stability.”
Additionally, the report highlighted specific consumer stocks expected to excel, naming UACN, NESTLE, and UNILEVER as select stocks.
The analysts also noted that investors looking for dividends are likely to prepare strategically before expected announcements from major companies, such as tier-1 banks, ARADEL, and TOTAL.
On the global front, analysts noted, “Markets will be closely monitoring Trump’s tariff decision, as investor sentiment will hinge on key economic indicators, such as the US January CPI data.’’
Performance for 2024
The Consumer Goods Index exhibited a commendable year-to-date performance in 2024, achieving a notable 27.56%, despite foreign exchange losses faced by companies in the sector.
- The index commenced 2024 at 2,206.26 points and made concerted efforts to rally in February.
- However, it faced a significant setback in April, declining by 508 index points in tandem with a broader fall in the All-Share Index.
Despite this setback, the third quarter of 2024 marked a resurgence for the Consumer Goods Index, which later experienced six consecutive months of growth from August 2024 through January 2025.
January 2025
At the start of January 2025, the Consumer Goods Index opened at 2,814.24 points, nearing the 3,000-point mark, and benefited from strong trading activity with a monthly volume of 4.8 billion shares, closing positively.
- Excluding a decline in the third week, the index achieved four consecutive weeks of growth, showcasing its resilience.
- The NGX Consumer Goods Index rose by 4.31% in January, driven by a substantial trading volume.
- This notable increase was propelled by strong performances from key players such as Vitafoam, Northern Nigeria Flour Mills, and Honeywell Flour Mills, each achieving remarkable gains exceeding 25% MTD.
