The stock market section of the Nigerian Exchange Limited (NGX) appreciated by N3.73 trillion by market capitalisation in the first four months of 2025 to close at N66.496 trillion as of April, 30, 2025.
Capital market analysts attributed the stock market N3.7 trillion growth to impressive 2024 performance by listed companies and the recovery of some companies in their first quarter ended March 31, 2025 corporate earnings released on the Exchange.
So far in 2025, the stock market has seen Monetary Policy Committee of the Central Bank of Nigeria (CBN) retaining the benchmark interest rate at 27.50 per cent, inflation moving to 24.23 per cent as of March 2025, listing by introduction of Legend Internet Plc, banks announcing the outcome of fresh capital raising on the Exchange, among others.
Figures compiled by THISDAY showed that the stock market opened this year at N62.76 trillion, gaining N3.73 trillion or 5.9 per cent to close on April 30, 2025 at N66.496 trillion.
The stock market in January appreciated by N1.95 trillion, attributable to caution trading by investors in some fundamentals companies quoted on the Exchange.
In February 2025, it appreciated by N2.48 trillion to close at N67.193 trillion.
In March 2025, the stock market was down by N936 billion as investors shifted attention to money market instruments. In addition, it gained N239.03 billion in April 2025 from N66.257 trillion it opened for trading to close at N66.496 trillion.
Consequently, the Nigerian Exchange Limited All-Share Index (NGX ASI) closed April 30, 2025 at 105,800.85 basis points, representing an increase of 2,874.45 basis points or 2.8 per cent from 102,926.40 basis points the equities market closed for trading in 2024.
With inflation rate at 24.23 per cent as of March 2025— driven by the CPI rebasing — and the Monetary Policy Committee (MPC) decision to hold rates in line with expectations, capital market analysts have hinted at further stock market appreciation in the remaining months of second quarter (Q2) of 2025.
The Managing Director, Globalview Capital Limited, Mr. Aruna Kebira in a chat with THISDAY, noted that the stock market in the first four months of 2025 witnessed the tanking of inflation figures and CBN retaining interest rate at 27.50 per cent.
“Those parameters alone gave the capital market investors a moment of respite in the first four months of 2025.
“The yields in the money market are not looking as attractive as they were in 2024, making discerning investors in search of better yields consider the capital market as their investment destination.
“In the last MPC, the MPR was retained, including other metrics. This is sending positive signals that as the inflation figure and money market yields are downward looking, the MPC would have a reason to tinker the MPR downward. Which always is not fixed income friendly.
“The release of both the UFS and AFS of issuers into the market was another booster as 80 per cent cannot be classified as lacklustre. Then, there was a follow-through with quality dividend declarations. We saw the banking sector pushing their limits with relish and are happy doing so.
“Zenith Bank and UBA paid N4.00 and N3.00 final dividend, while GTCO paid a whooping N7.03 as final dividend to shareholders.”
He noted that the performance of the stock market in Q2 2025 would be hinged on the quality of the first quarter of 2025 results.
“If the various issuers demonstrate a performance higher than the corresponding period of 2024, the market will move to appreciate their prices.
“I also see an improvement in the liquidity around the stock market arena, which will boost market participation and invite the bull into the market,” he added.
In addition, 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 (2024: 15.3 per cent | 2023: 11.5 per cent) as improving macroeconomic conditions and prospects of monetary easing enhance the appeal of Nigerian equities.”
