Foreign Investors Propel NGX Beyond N1trn Threshold Amid Strong Market Activity
In March 2025, the Nigerian Exchange Limited (NGX) experienced significant growth, crossing the N1 trillion threshold for the first time, with a total market turnover of N1.12 trillion. This surge, up 118.95% from February’s N509.47 billion, was largely driven by foreign investors, whose portfolio transactions skyrocketed by over 1,500%, reaching N699.89 billion. In contrast, domestic investment saw a slight decline of 10.98%, totaling N415.62 billion. This shift highlights the increasing influence of foreign capital in the market.
Foreign inflows and outflows were nearly balanced, standing at N349.97 billion and N349.92 billion, respectively, showcasing strong demand for Nigerian equities despite challenges like the naira’s depreciation. Over the first quarter of 2025, foreign investments totaled N814.05 billion, accounting for 36.47% of the N2.23 trillion in total transactions, a marked increase from just 13.77% in the same period of 2024. This shift signals a growing foreign interest in the Nigerian stock market.
Despite the macroeconomic challenges, including currency volatility, the NGX saw strong performance in late April 2025, gaining N966 billion during a four-day trading week. The market capitalization rose to N66.465 trillion, fueled by corporate earnings reports. Sector performance was largely positive, with the NGX Consumer Goods Index leading the gains, up 8.65%, driven by strong performances from companies like International Breweries and NASCON Allied Industries.
The positive market performance continued as investor sentiment remained robust, with a 21.6% increase in volume and a 30.3% rise in value from the previous week. The Financial Services sector was dominant, comprising over half of the trading volume and value. However, analysts cautioned that while earnings-driven optimism is fueling market gains, potential macroeconomic challenges and profit-taking could temper future growth in specific segments.
Source: The Sun