Market News

Kayode Tokede

The local stock market gained N402.42 billion first trading week of 2025, attributable to investors’ surge demand for MTN Nigeria Communications Plc (3.1 per cent), BUA Foods Plc (5.1 per cent) and 80 other stocks quoted on the Nigerian Exchange Limited (NGX).

The market capitalisation that opened for trading in 2025 at N62.763 trillion, appreciated by N402.42 billion or 0.64per cent to close at N63.166 trillion. 

As a result, the NGX All-Share Index advanced by 1.4per cent week-on-week to 103,586.33 basis points from 102,926.40 basis points, with the Year-to-Date return settling at +0.6per cent.

The stock market had opened for four days for four days last week as the Federal Government declared Wednesday January 1, 2025, as Public Holiday to commemorate the New Year Day Celebration.

Sectoral performance was broadly positive, as the NGX Insurance index (+26.9per cent), NGX Consumer Goods Index (+2.2per cent), NGX Banking Index (+0.6per cent) and NGX Industrial Goods Index (+0.5per cent) recorded gains, while the NGX Oil & Gas Index (-0.4per cent) index closed the week lower.

According to the weekly market report,  a  total turnover of 2.618 billion shares worth N69.742 billion in 47,953 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 1.387 billion shares valued at N52.023 billion that exchanged hands in 33,411 deals in prior week.

The report stated that, “The Financial Services Industry (measured by volume) led the activity chart with 1.751 billion shares valued at N17.079 billion traded in 20,595 deals; thus contributing 66.88 per cent and 24.49per cent to the total equity turnover volume and value respectively.

“The Services industry followed with 205.807 million shares worth N1.829 billion in 3,654 deals. Third place was the ICT Industry, with a turnover of 189.938 million shares worth N1.844 billion in 3,686 deals.

“Trading in the top three equities namely Royal Exchange Plc, Chams Holding Company Plc and Universal Insurance Plc (measured by volume) accounted for 612.033 million shares worth N773.439 million in 2,108 deals, contributing 23.38pepr cent and 1.11 per cent to the total equity turnover volume and value respectively.”

Analysts at Cordros Research, “As the new year unfolds, we anticipate heightened market volatility with a bullish tilt, driven by ongoing portfolio rebalancing activities as investors respond to evolving macroeconomic conditions, shifting market sentiment, and position for the earnings season ahead.”

However, capital market analysts have projected that in 2025, the capital market would experience notable developments, basically shaped regulatory changes, technological adoption, and macroeconomic factors.

In 2024, the market experienced notable developments as the All Share Index of stock listed o(NGX ASI grew by 37.7 per cent. This growth was driven by robust earnings from blue-chip companies and supportive government policies.

In 2025, analysts expect more foreign investor’s participation now that macroeconomic stability is maintained and currency reforms are anticipated to develop, thus enhancing Foreign Portfolio Investments (FPI).

As the NGX planned introduction of a dedicated SME board on the local bourse, which provides small and medium enterprises with better access to public capital, there should be significant growth potential for businesses and diversification of the market base.

For sophisticated investors, the rollout of planned derivatives such as futures and options would appeal to them, thus creating opportunities for hedging and risk management.

Giving an outlook for 2025, Olatunde Amolegbe, the CEO of Arthur Stevens Asset Management noted that the NGX is poised for moderate growth in 2025 as the government consolidates on economic reforms evidenced by the EFEMS guidelines. He added that foreign portfolio investment inflows are expected to rise with continued exchange rate stability and improved macroeconomic conditions.