Nigeria's consumer goods sector focus

The Nigeria Stock Exchange's Consumer Goods Index led the sector gainers as the rally on the equities market persisted at the close of trading on Thursday. Ifedayo Olowoporoku, a consumer analyst at Vetiva Capital Management, provided insights into the sector's performance and outlook. The bullish trend that started in May has continued, with the consumer goods sector experiencing gains throughout the week. This positive momentum reflects a significant turnaround from the bearish trend observed earlier in the year. The sector, which was down by about 21% in February, has seen a notable recovery, driven by positive Q117 results and increased market confidence. Major players like Nestle, Nigeria Breweries, and Flour Mills have been leading the uptrend, with smaller companies like Honeywell Flour Mills and International Breweries also joining the rally. Olowoporoku anticipates that the positive trend will likely extend into the coming week, with the month of June poised for bullish territory for the entire market. Investors are advised to keep an eye on prominent stocks within the sector, such as Nestle, Nigeria Breweries, and Flour Mills, which have shown consistent upward movements in prices. Despite concerns about reaching pre-2014 levels, Olowoporoku remains optimistic about continued gains, citing increased trading volumes as a positive indicator. Overall, the outlook for Nigeria's consumer goods sector appears favorable, with expectations of sustained growth and recovery.