Capital Market Investments Rise By N3.49trn In Q1

The Nigerian Exchange (NGX) market capitalisation which represents the market value of all listed companies gained N3.494 trillion in the first quarter (Q1) of the year 2025.

The overall market performance measure All-Share Index (ASI), which tracks the general market movement of all listed equities on the Exchange, rose by 2.66 per cent to close at 105,660.64 points in the first three months of the year from 102,926.40 points it closed on December 31, 2024.

Also, the market capitalisation gained N3.494 trillion to close on March 28, 2025 at N66.257 trillion from N62.763 trillion at which it opened for trading activities on January 2, 2024.

Since the beginning of trading in 2025, the stock market has witnessed sentiment trading by investors but the banking sector recapitalisation of the Central Bank of Nigeria (CBN) sustained a rally in listed banking stocks.

A breakdown of stock market monthly performance showed that the stock market in January appreciated by N1.95 trillion; the market maintained its bullish streak in February as the benchmark index advanced by 3.2 per cent, while the stock market depreciated by N936 billion in March 2025 as investors shifted attention to money market instruments.

From a sectoral standpoint, performance was predominantly bullish. The NGX Banking index emerged as the best-performing sector by 6.96 per cent in Q1. NGX Pension index achieved a growth of 5.86 per cent in Q1, while NGX Consumer Goods up by 4.86 per cent in Q1.

NGX Premium index posted a growth of 4.65 per cent in Q1, NGX 30 index grew by 2.87 per cent in Q1.

On the other hand, the NGX Oil and Gas index registered the steepest decline by 9.34 per cent. NGX Insurance index down by 2.71 per cent in the period under review, while NGX Industrial Goods index dropped by 2.30 per cent in Q1.

Speaking on the market performance in Q1, the vice president, Highcap Securities, Mr.  David Adonri, stated that the Q1 2025 was positive for the equities market as it appreciated by about 2.7 per cent.

He said, “The two percent decline in March 2025 depressed the overall performance of the market in Q1 2025. It is believed that discordant tunes from the banking sector regarding the postponement of the release of their full-year results made the market bearish in March 2025.

“Although their results were impressive when they were released in the last week of the month, it was too late to reverse the damage that had been done.”

On the stock market performance in Q2 2025, he explained that, “the market is entering Q2 2025 with hope and optimism as major enterprises have started recovering from the damage inflicted on their balance sheets due to floating of the naira.

“Banks are also expected to post higher unprecedented profits in Q2. These can elevate equities in Q2 2025.”

Analysts at Cordros Research stated that, “we believe the domestic equities market might respond positively to the MPC’s decision to pause interest rate hikes as investors assess the likelihood of policy easing in the medium term.

“We also expect to see some rotation into sectors positioned for expansion in a lower-rate environment, particularly the manufacturing sector, as lower financing costs, improved input cost dynamics, and stronger consumer demand enhance growth prospects, making the sector more attractive to investors.

“Furthermore, foreign portfolio investor (FPI) participation is expected to rise as improving macroeconomic conditions and prospects of monetary easing enhance the appeal of Nigerian equities.”

The chief operating officer of InvestData Consulting Limited, Ambrose Omordion said, “we expect mixed sentiment to continue on bargain hunting and profit taking, as more corporate earnings are expected to hit the market with dividend announcement. Also, sector rotation and portfolio rebalancing continued in the market with investors taking advantage of price correction to buy into value.

“This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”