Trading Tuesday - Navigating Nigeria’s Growth Momentum Amid Global Uncertainty
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Market Overview
Good evening and welcome to todays market update, Nigeria’s market remains resilient, supported by strong corporate performance and banking sector growth, with Custodian Investment Plc surpassing ₦1 trillion in assets and expansion across key industries. Meanwhile, Dangote Group continues to drive exports despite rising energy costs. Globally, geopolitical tensions and slowing economic activity are shaping cautious investor sentiment. Overall, markets reflect a balance between growth opportunities and inflation-driven risks.
Nigerian News & Market Update
Custodian Investment surpasses N1 trillion assets milestone:
Custodian Investment Plc’s assets surged 155% to exceed ₦1 trillion in 2025, driven by strong revenue growth and diversification into merchant banking. The acquisition of Quest Merchant Bank significantly boosted its asset base and expanded services into wealth management and advisory. Overall performance showed rising profits, stronger equity, and continued growth in its core insurance business despite economic challenges. - Punch
Dangote boosts fuel, fertiliser exports amid supply crisis:
Dangote’s refinery has increased exports of fuel and fertiliser across Africa to address shortages caused by global supply disruptions. The plant is operating at full capacity, supplying multiple African regions, though rising crude oil prices continue to push up fuel costs in Nigeria. Despite higher output, structural challenges and global market pressures mean price relief may take time to materialise. - Punch
Energy cost spike drives cement to N12,000/bag:
Rising energy and fuel costs have pushed cement prices in Nigeria to about ₦12,000 per bag. Higher logistics and production expenses are making construction projects more expensive and slowing activity. Experts link the surge to fuel price hikes, global factors like the Middle East crisis, and manufacturers’ pricing practices. - Punch
Wema Bank reaffirms commitment to MSMEs:
Wema Bank reaffirmed its commitment to supporting MSMEs, highlighting their role in driving Nigeria’s economic growth. The bank won two global awards for its SME financing and digital lending solutions, including a fast, collateral-free loan system. It continues to expand support through digital platforms, training, and targeted initiatives to improve access to funding and business growth. - Punch
Nigeria Sectoral Indices Performance
The table below shows, Sectoral performance showed a broadly positive tone, with the NGX 30 and Banking Index leading gains across most timeframes, reflecting sustained investor confidence. While pockets of weakness persisted in Insurance and Industrial Goods, Consumer Goods and Oil/Gas provided stability with solid year-to-date returns. Overall, market breadth remains supportive, underpinned by strong banking sector momentum and resilient gains across key indices.
Fixed Income (FGN Bonds)
Action
Global News & News Update
JP Morgan reaches agreement with City airport for Canary Wharf’s tallest tower:
JPMorgan Chase has agreed with London City Airport to build a 265m tower in Canary Wharf, set to become the area’s tallest building. The £3 billion skyscraper will serve as its new UK headquarters, housing over half of its 23,000 staff. The project could boost the UK economy and create jobs, though discussions continue over potential tax breaks and planning approval. - The Guardian
Gold price weakens as Trump’s Iran deadline keeps markets cautious:
Gold prices dipped slightly as investors stayed cautious over tensions involving Donald Trump and the Strait of Hormuz. Rising oil-driven inflation supports gold, but higher interest rates reduce its attractiveness. Overall, uncertainty is keeping gold prices unstable. - CNBC
German service sector growth slows to seven-month low, PMI shows:
Germany’s service sector growth slowed sharply, with PMI dropping to a seven-month low due to weaker demand. The downturn is linked to rising energy costs and uncertainty from the Middle East conflict, reducing new business activity. Firms face higher costs but struggle to raise prices, leading to weaker outlooks for economic growth. - Reuters
China and Russia veto UN resolution on protecting Hormuz shipping:
China and Russia vetoed a United Nations Security Council resolution aimed at protecting shipping in the Strait of Hormuz, calling it biased against Iran. The move deepens global tensions, with the U.S. condemning the veto while China and Russia push for an alternative approach. - Reuters
Indices, Commodities & Currencies
The table below shows, Global markets turned risk-averse as major equity indices declined across the U.S., Europe, and Asia, while volatility climbed, signalling rising investor caution. Energy commodities stood out as the only strong performers, with oil and gas prices advancing amid supply and demand dynamics, contrasting with broad weakness in metals, soft commodities, and grains. Meanwhile, a firm U.S. dollar and mixed currency movements reinforced a cautious macro outlook shaped by uncertainty around growth and inflation.
Fixed Income (USA Bonds)
Conclusion
Nigeria’s outlook remains positive but sensitive to energy prices, inflation, and currency stability, with banks like Wema Bank supporting economic activity. Globally, uncertainty around geopolitics and interest rates is likely to keep markets volatile. Investors should stay cautious, focusing on resilient sectors like banking and energy while monitoring macroeconomic signals for emerging opportunities.
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