Nigerian Stock Market Gains N3.49 Trillion in Q1 2025 Amid Sectoral Performance Variations
The Nigerian Exchange (NGX) experienced a significant growth in market capitalization, gaining N3.49 trillion in the first quarter of 2025. The market value of all listed companies on the Exchange rose from N62.76 trillion at the start of January 2025 to N66.26 trillion by March 28, 2025. The All-Share Index (ASI), a key market performance indicator, saw a 2.66% increase, closing at 105,660.64 points, up from 102,926.40 points at the end of 2024. The strong growth was attributed to bullish investor sentiment, particularly spurred by the Central Bank of Nigeria’s banking sector recapitalization.
Monthly performance showed varied results. January saw a notable increase of N1.95 trillion in market value, followed by a 3.2% rise in February. However, the market experienced a setback in March, with a decline of N936 billion as investors shifted focus to money market instruments. Despite the March dip, overall market performance for the first quarter remained positive, with some sectors performing exceptionally well.
Sectoral performance was mixed, with the NGX Banking Index emerging as the best performer, up by 6.96%. Other strong sectors included the NGX Pension Index (up 5.86%) and NGX Consumer Goods (up 4.86%). Meanwhile, the NGX Oil and Gas Index saw the steepest decline, falling by 9.34%, followed by the NGX Insurance Index (down by 2.71%) and NGX Industrial Goods Index (down by 2.30%).
Analysts are optimistic for the second quarter of 2025, with expectations of higher corporate profits, particularly in the banking sector. Market analysts also anticipate a positive response to potential interest rate pauses and the subsequent easing of monetary policy, which could favor growth sectors like manufacturing. Experts predict mixed market sentiment as investors continue to balance between bargain hunting and profit-taking, with a possible rise in foreign investor participation due to improved macroeconomic conditions.
Source: Leadership