Analysts at CardinalStone anticipate that the bearish sentiment that surfaced in the final week of February 2025 may extend into March if the market continues to appear overbought.
This insight was shared in their economic update titled “Mixed Sentiments Across Global Equities; Bullish Momentum Prevails on the Local Exchange,” published on March 3, 2025.
They noted that panic selling in March could likely drag the weighted All-Share index down: “In March, the bearish sentiments that emerged towards the end of February are likely to spill over into the month, as profit-taking seems to be triggering panic selling.”
Despite this, they believe that such sell-offs might present buying opportunities for investors looking to purchase fundamentally sound stocks at lower prices.
Additionally, they emphasized that the upcoming release of FY’24 earnings and dividend announcements from both banking and non-banking entities is expected to significantly impact market conditions.
All Share in February
The All-Share index started February on a high note, gaining 1,436.91 points in the first week to close at 105,933.03.
- This surge was driven by heavyweight stocks like FBNH, ACCESSCORP, and WAPCO.
In the second week, the index continued its upward trajectory, advancing by 2,120.92 points to finish at 108,053.95, fueled by strong performances in the industrial goods sector, particularly from DANGOTE CEMENT and BETAGLASS.
- However, momentum began to wane in the third week, with the All-Share rising only 443.45 points, supported mainly by consumer goods stocks such as Dangote Sugar and BUA Foods.
By the fourth week, a bearish trend emerged, leading to a definitive 0.62% decline, with the All-Share Index closing the week firmly in the red.
So far, this negative sentiment has carried into the first week of March 2025, with the index already down by 0.97% week-to-date as of the pre-market opening on March 7, 2025.
Weighted industrial goods sector
In February, the industrial goods sector emerged as the best-performing sub-index, soaring by 10.78% to finish the month firmly in the green.
- This impressive growth was largely driven by heavyweight DANGOTE CEMENT, which experienced a remarkable month-on-month increase of 21.83%.
Analysts noted, “The surge followed Aliko Dangote’s announcement of a $400 million investment in a second production line at the Mugher cement plant in Ethiopia. This strategic expansion is expected to double the plant’s annual output to 5 million tonnes within a projected timeline of 30 months.”
From a technical perspective, the industrial goods index is currently riding a strong long-term buy trend in the Nigerian stock market.
- A pullback that began in February 2024 saw the index tumble from a January high of 5,637 to 3,267 in January 2025, creating a buying opportunity.
