Investors Reap N4.43trn Profit From Equities In 2 Months

Nigerian equities market ended the first two months of 2025 on a bullish trajectory, as investors’ investment increased by N4.430 trillion

With the Central Bank of Nigeria (CBN) significantly dropping interest rates on Treasury bills following a decline in the country’s inflation rate, investors’ surge demand for some listed companies have played a critical role in the stock market’s N4.43 trillion increase in the period under review.

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Market analysts had anticipated a shift to the stock market as participants in the Treasury bill market had already begun repricing yields downward despite the tight liquidity conditions in the financial system.

The overall market performance measure All-Share Index (ASI), which tracks the general market movement of all listed equities on the Exchange, rose by 4.76 per cent to close at 107,821.39 points on February 28, 2025 from 102,926.40 points it opened trading on January 2, 2025.

Also, the market capitalisation gained N4.430 trillion to close on February 28, 3035 at N67.193 trillion from N62.763 trillion at which it opened for trading activities on January 2, 2025.

Also, sector performance was bullish as most indices closed the period on uptrend as of February 28, 2025. NGX Lotus II index appreciated the most by 11.23 per cent. NGX Premium index followed with a monthly year-to-date gain of 7.76 per cent, while NGX Banking index rose by 7.49 per cent.

Others are NGX Pension, NGX Consumer Goods, NGX 30, and NGX Industrial Goods indices went up by 6.93 per cent, 6.25 per cent, 5.03 per cent and 1.34 per cent respectively. On the other hand, NGX Oil & Gas index reported a decline of 5.55 per cent during the period under review, while NGX Insurance index declined by 0.24 per cent.

The managing director of Arthur Steven Asset Management Limited (ASAM), Olatunde Amolegbe said the stock market growth in 2025 is underpinned by ongoing bank recapitalization efforts, new listings, and anticipated monetary policy easing by the CBN.

Amolegbe, highlighted Nigeria’s relative market attractiveness as a key factor in attracting increased FPI, provided stable policies are maintained, noting that the bank recapitalization process is set to boost investor confidence, while high-profile listings such as Nigerian National Petroleum Company Limited and Dangote Refinery are expected to enhance market liquidity and broaden investment opportunities.

He noted that the projected bullish trend in 2025 comes as investors position themselves ahead of 2024 fiscal year results and dividend declarations, particularly in the banking sector.

Amolegbe however said that the market’s performance will depend on critical factors such as the country’s economic growth trajectory, monetary policy direction, and corporate earnings results.

He anticipated a shift toward equities as fixed-income yields declined, driven by the CBN’s likely adoption of a more accommodative monetary stance. He added that, “the 2025 outlook for the Nigerian stock market remains optimistic, bolstered by strategic reforms, policy adjustments, and improving investor confidence. While challenges such as exchange rate instability and inflation persist, key sectors are positioned to drive market performance and deliver strong returns for investors.”

The chief operating officer of InvestData Consulting Limited, Ambrose Omordion stated that “we expect mixed sentiment to continue as investors react to latest corporate earnings and corporate actions in the midst of profit taking and portfolio reshuffling. Even as more earnings reports are expected to hit the market with dividend announcements. Also, sector rotation and portfolio rebalancing continued in the market with investors taking advantage of price correction to buy into value.”

Also, Cardinalstone Research said, “for domestic equities, we expect market direction to be shaped primarily by investor reactions to the ongoing release of full year 2024 financial results.

“In our view, we believe that some consumer goods counters may see positive momentum, driven by a relatively stronger Q4 2024 performance, supported by naira stability during the quarter. Additionally, dividend-seeking investors are likely to position ahead of dividend announcements from key dividend-paying stocks.”