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0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/nigerian-equities-near-critical-support-as-tech-sectors-slump-oil-and-banking-reforms-offer-hope/
Nigeria’s equity market extended its losing streak on Thursday, with the NGX All-Share Index shedding 0.5% to hover near the psychologically significant 106,000-point threshold.
The broader market remained firmly bearish, with only two of 19 sectors eking out gains. Technology stocks bore the brunt of the sell-off, plunging 5.11%, while commercial services and tech services slid 2.92% and 2.28%, respectively. The rout underscored deepening caution among investors, who appear to be trimming exposure to high-risk sectors amid lingering macroeconomic uncertainty.
A rare bright spot emerged in transportation stocks, which climbed 1%, while blue-chip heavyweights like Dangote Cement, Bua Foods, Bua Cement, and Aradel held steady. Analysts warn, however, that the sustained weakness in tech—a sector once seen as a growth engine—signals broader risk aversion that could prolong market volatility.
Amid the equity slump, the federal government is doubling down on oil and gas to revive Nigeria’s growth trajectory. Officials aim to hit a 5% GDP target by 2027, though 2024 projections remain modest at 3.84%. With crude oil still accounting for over 90% of foreign exchange earnings, boosting production from current levels of 1.4 million barrels per day is critical. Success could stabilize FX liquidity, fund infrastructure projects, and reignite confidence in energy stocks—a potential catalyst for the broader market. Yet risks loom: global price swings and persistent pipeline vandalism threaten to derail output targets.
Separately, President Bola Tinubu’s push to modernize Nigeria’s financial sector is gaining traction. The recent unveiling of First Bank’s sleek new headquarters in Lagos symbolizes his vision for a banking system capable of rivaling regional peers. Strengthening lenders’ capital buffers and governance could attract foreign investment, though experts stress reforms must address structural issues like high interest rates and non-performing loans to unlock lasting equity market gains.
As investors weigh tech’s tumble against energy and banking reforms, Nigeria’s market faces a pivotal moment—balancing short-term pain against long-term bets on economic reinvention.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/nigerian-equities-near-critical-support-as-tech-sectors-slump-oil-and-banking-reforms-offer-hope/
