Positive Corporate Earnings Trigger N239bn Stock Market Gains In April

The Nigerian Exchange (NGX) market capitalisation which represents the market value of all listed companies gained N239 billion in the month of April, 2025 as a result of positive corporate Earnings declared by some listed entities in the country.

The overall market performance measure All-Share Index (ASI), which tracks the general market movement of all listed equities on the Exchange, rose by 0.13 per cent to close at 105,800.85 points on April 30, 2025 from 105,660.64 points on March 28, 2025. Also, the market capitalisation gained N239 billion to close the month of April at N66.496 trillion from N66.257 trillion at which it opened for trading activities on April 2, 2025.

The monthly gain is on the back of the better-than-expected Q1 corporate earnings and amid the global economic uncertainties driven by US trade policy.

During the month, the NGX admitted two billion ordinary shares of Legend Internet Plc on the Mainboard of the Exchange at N5.64 per share by way of introduction.

Speaking, the chief operating officer of InvestData Consulting Limited, Ambrose Omordion said, the tariffs and counter-tariffs imposed are resulting in selloffs in the major markets, thereby, creating buy opportunities for traders and investors in these domains, helped by healthy company scorecards and mixed macroeconomic data pointing to continued volatility.

“These are expected to create wealth for players that plan their trades and trade their plans, especially amid the ongoing trade negotiations and shift in trade policies now creating new opportunities for nations and companies,” he stated.

He added that, “the sustained low valuation in the market may trigger high demand for stocks as players realign their portfolios. However, there is a need to invest wisely, using bids, offers, and volume when making decisions as a trader.”

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 managing director of Arthur Steven Asset Management Limited (ASAM), Olatunde Amolegbe said, the stock market growth in 2025 is underpinned by ongoing bank recapitalisation 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 recapitalisation 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 said, 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 decline, 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.”