The bullish momentum in Nigeria’s equities market persisted into 2025, as investors raked in N1.94 trillion in January, driven by strong corporate earnings and expectations of robust dividend declarations for the 2024 financial year.
Data from the Nigerian Exchange Limited (NGX) revealed that the market capitalization of listed equities, which stood at N62.77 trillion at the end of December 2024, surged to N64.71 trillion by January 31, 2025, reflecting a three per cent gain. Similarly, the All-Share Index (ASI) climbed by 1,569.72 points or 1.5 per cent, rising from 102,926.4 to 104,496.12.
Investor optimism remained high, fueled by stellar earnings reports that signaled strong corporate performance and potential dividend windfalls. This positive sentiment was further reinforced by increased global investments in artificial intelligence (AI) and the supplementary listing of ordinary shares by Lasaco Assurance Plc and FCMB Group Plc, which contributed an additional N1.06 trillion to investor wealth.
Four of the six major market indices posted positive year-to-date (YTD) performances, underscoring broad-based strength. The banking index led with a 9.8 per cent increase, while the consumer goods index advanced by 4.5 per cent.
Among individual stocks, Chellaram recorded the highest price gain, soaring by 60.4 per cent, followed by Vitafoam, which rose by 31.5 per cent amid strong investor demand. Betaglas and Northern Nigeria Flour Mills appreciated by 21 per cent each, while SKYAVN climbed 20.7 per cent, as investors positioned for further earnings growth. Overall, the market’s YTD return stood at 1.53 per cent, highlighting sustained confidence in Nigerian equities.
Reacting to the market’s performance, Olatunde Amolegbe, Managing Director of Arthur Stephen Asset Management Limited, described the 1.5 per cent increase in the ASI as impressive, especially given that January is typically a slow month due to household financial commitments.
“There was a notable rise in both trading volume and value compared to the previous year,” Amolegbe noted. “The banking and consumer goods sectors performed well, likely due to expectations of lower inflation, while the oil and gas sector remained flat amid stable fuel prices.”
Looking ahead, he predicted an exciting few months as corporate earnings reports and dividend announcements shape market performance in February and March.
David Adonri, Vice President of Highcap Securities Limited, also highlighted that both equities and bond markets experienced an uptick in January, reinforcing investor confidence.
With sustained momentum and favorable economic indicators, market participants are optimistic that Nigerian equities will continue their strong performance in the months ahead.
