The Nigerian equity market commenced 2025 with a surge of optimism, as the All-Share Index (ASI) registered a 0.25% uptick, adding N155 billion to the market capitalization. This positive start to the year aligns with the broader upward trend observed in the Nigerian stock market since 2020. The ASI closed at 103,180.14 points, marking gains across various timeframes: 0.25% year-to-date, 0.25% month-to-date, and a more robust 1.02% week-to-date. This initial performance indicates a potential continuation of the market’s recovery and growth trajectory. The total market capitalization reached N62.918 trillion, reflecting the increased value of listed companies. Trading activity was also brisk, with a total of 829.75 million shares exchanged in 11,752 deals, amounting to a total value of N5.67 billion. This active trading environment suggests strong investor confidence and participation in the market.
Market breadth, a key indicator of overall market sentiment, was positive, with 58 equities advancing compared to only 8 decliners. This suggests a broad-based rally, with more stocks participating in the upward movement. Among the top gainers, National Cash Register, RT Briscoe, Cutix, International Energy Insurance plc, and Mansard all recorded a significant 10% appreciation in their share prices. These strong gains highlight specific companies that attracted investor interest and benefited from positive market momentum. Conversely, Ellah Lakes led the decliners with a 4.75% drop, followed by NASCON and CWG, which fell by 4.31% and 3.25% respectively. These declines, while present, were less pronounced than the gains, further reinforcing the overall positive sentiment in the market.
Trading volume was dominated by Royal Exchange, with a significant 290.99 million shares traded worth N318.64 million. This high volume indicates substantial investor interest in Royal Exchange, potentially driven by company-specific news or market expectations. Chams and AIICO also saw considerable trading activity, with 63.68 million and 58.60 million shares traded, respectively. In terms of value traded, Zenith Bank led the market with N680.67 million, followed by Access Corporation and UBA with N430.78 million and N415.66 million respectively. These large-cap stocks often attract significant trading volumes due to their liquidity and market influence. The high value traded in these stocks suggests institutional investor participation and continued interest in the Nigerian banking sector.
Sectoral performance also reflected the positive market trend. The Insurance Index emerged as the top performer, surging by 9.5% year-to-date and a remarkable 22.23% for the week. This strong performance suggests renewed investor confidence in the insurance sector. The Main Board Index also registered gains, rising by 0.3% year-to-date and 1.51% for the week. Similarly, the Consumer Goods Index saw an increase of 0.16% year-to-date and 2.27% for the week, indicating positive sentiment toward consumer-focused companies. While the Banking Index experienced a slight decline of 0.68% for the week, it still maintained a positive year-to-date return of 0.27%.
The Nigerian stock market’s positive start to 2025 builds upon a remarkable recovery and growth trajectory witnessed since 2020. According to reports, the NGX All-Share Index has experienced an impressive 283.45% surge since the end of 2019, rising from 26,842.07 points to 102,926.40 points by the end of 2024. This significant growth reflects increased investor confidence in the Nigerian economy and the potential for further growth in the equity market. The market’s resilience in the face of global economic challenges and its ability to attract both domestic and foreign investment positions it favorably for continued expansion in the coming years.
The early 2025 performance suggests that the positive momentum observed in recent years is likely to persist. Factors contributing to this positive outlook include improving macroeconomic conditions, increased corporate earnings, and growing investor participation. However, potential risks such as global economic uncertainties, political developments, and regulatory changes could influence market performance in the future. Nonetheless, the current trajectory suggests that the Nigerian stock market is well-positioned for continued growth and offers attractive investment opportunities for both domestic and international investors. The market’s ability to weather economic storms and deliver strong returns makes it a compelling investment destination in the African continent.
