Investors’ investments on the Nigerian equities market appreciated by N1.95 trillion in January 2025.
This is as Access Holdings, Guaranty Trust Holding Company (GTCO), FCMB Holdings and Lasaco Assurance listed a total value of N716.09 billion additional shares on the Nigerian Exchange (NGX) during the month.
Accessing Holdings, GTCO and FCMB Group listed N351.009 billion, N209.417 billion and N144.56 billion respectively arising from their capital raising offers on the daily official list of NGX, while Lasaco Assurance listed additional N11.100 billion worth of shares from its private placement offer.
Specifically, the market capitalisation added N1.95 trillion at the close of trading on January 31, 2025 from N62.763 trillion it opened for trading to close at N64.709 trillion the month under review. Consequently, the NGX All-Share Index closed January 2025 with a gain of 1.53 per cent at 104,496.12 basis points from 102,926.40 basis points the stock market opened for trading this year.
Since the beginning of 2025, the stock market has witnessed caution buying trading by investors, especially in the Oil & gas, insurance and Industrial Goods sub-sector, and it triggered massive sell-off in large company stocks quoted on the bourse.
Meanwhile, analysts stated that the stock market performance in January 2025 is a reflection of uncertainty in the domestic economy.
The Investment Banker & Stockbroker, Tajudeen Olayinka stated that stock market performance in January 2025 was not impressive due to the 2024 year-end rally that came rather too late and unimpressive.
“Market had a delayed year-end rally that arose from delayed allotment and listing of shares recently offered to the public by some of the banks that approached the market for capital raising between June 2024 and now.
“The prolonged CBN capital verification could be ascribed as the principal causative factor for the unusual performance of the market in January 2025. Market failed to enjoy a reasonable level of liquidity as a result,” he explained.
On President Donald Trump’s policies impacting the emerging market, he said: “I do not see any negative impact on the market from Trump’s presidency because Nigeria is an import dependent nation, not to be seriously affected by Trump’s wall of tariffs.”
Also, the managing director of Arthur Steven Asset Management Limited, 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 Central Bank of Nigeria (CBN).
Amolegbe highlighted Nigeria’s relative market attractiveness as a key factor in attracting increased foreign portfolio inflows (FPI), provided stable policies are maintained.
He noted 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.
“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.”
However, Amolegbe cautioned 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.
The firm, however, anticipated a shift toward equities as fixed-income yields decline, driven by the CBN’s likely adoption of a more accommodative monetary stance, saying that “despite lingering concerns over exchange rate volatility and inflation, conservative sectors such as banking, consumer goods, and industrials are expected to perform well, offering steady returns for investors.”
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.”
On market outlook in February, the chief operating officer of InvestData Consulting Limited, Ambrose Omordion said, “we expect mixed sentiments to continue as players digest corporate numbers and more earnings reports hits the market to reveal value and give insight of dividend expectation, while rebalancing their portfolios midst high inflation and earnings expectations. Also, sector rotation and portfolio rebalancing continued in the market with investors taking advantage of price correction to buy into value.”
Omordion noted that this is amid the volatility and pullbacks that add more strength to upside potential, saying that “investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”