JUST-IN: Amid uncertainty, equities market gains N1.95trn in January 2025

Following global and domestic uncertainty, the Nigerian equities market in January 2025 gained N1.95 trillion as investors trade with caution.

The market capitalisation that opened 2025 at N62.763 trillion, gained N1.95 trillion to close January 2025 at N64.709 trillion.

Consequently, the Nigerian Exchange Limited All-Share Index (NGX) closed January 2025 at 104,496.12 basis points, about 1.53per cent or 1,569.72basis points increase when compared to 102,926.40 basis points the equities market closed for trading in 2024.

In January 2024, the equities market gained N14.44 trillion amid President Bola Tinubu bold economic reforms that include foreign exchange, and removal of subsidiary. 

The N14.44 trillion gain in market capitalisation is coming on the backdrop of rising insecurity, inflation, other macroeconomic challenges, and global uncertainty.

The Managing Director Arthur Steven Asset Management Limited (ASAM), Mr. Olatunde Amolegbe, had projected 39 per cent equities market growth this year, stressing that the growth is underpinned by ongoing bank recapitalization 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 recapitalization 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.

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.

“Overall, 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,” he stated. 

Related Articles

Back to top button