In the first quarter of 2025, Nigerian investors have seen their fortunes rise by approximately N180 billion, driven by strong corporate earnings and steady dividend payouts. The Nigerian Stock Exchange (NSE) has continued its positive momentum, with the all-share index (ASI) climbing 0.27% to close at 106,042.57 points. This upward trend reflects investor optimism spurred by better-than-expected earnings results and attractive dividend yields.
Investor activity has surged, with a notable 37% increase in deal count, reaching 70,329 transactions, and an 18.6% rise in trading volume, amounting to 2.19 billion units. Transaction values also saw a substantial 34.6% jump, reaching N75.41 billion, signaling a shift toward higher-value investments. This reflects increased participation from both institutional and retail investors, positioning themselves for future earnings announcements while capitalizing on first-quarter gains.
Sector performance was mixed, with the consumer goods sector leading the charge, rising 2.89%. Companies such as Fidson Healthcare, Cadbury Nigeria, and May & Baker Nigeria saw impressive rallies thanks to strong revenue growth and margin expansion. The industrial goods sector also posted a modest gain of 0.4%, supported by solid performance in companies like Caverton Offshore Support and Beta Glass.
However, some sectors saw declines, with the banking sector slipping by 0.38%, largely due to profit-taking in stocks like Access Corporation and Ecobank. The oil and gas sector also struggled, falling 2.9%, as regional crude prices softened and investors took profits in midstream stocks like Aradel Holdings. Similarly, insurance stocks fell by 2.89%, while the commodities sector dipped 1.12% due to concerns over rising input costs for bulk-commodity producers.
Dividends played a significant role in boosting investor sentiment. Companies like Dangote Sugar Refinery, Guaranty Trust Holding Company, and UPDC REIT announced dividend payouts, reinforcing the positive outlook for the market. Analysts forecast continued positive performance in the coming week, but they caution that selective stock picking and profit-taking may emerge as potential market forces. Investors are advised to focus on fundamentally strong stocks, especially in light of upcoming macroeconomic data and the May 2025 Monetary Policy Committee meeting.
Source: The Guardian