Local Investors Dominate N2.7 Trillion Stock Deals in First Four Months of 2025
In the first four months of 2025, stock transactions on the Nigerian Exchange (NGX) totaled N2.714 trillion, a significant increase from N1.894 trillion during the same period in 2024. Monthly trading figures showed a peak in March with N1.115 trillion in stock deals, while January, February, and April recorded N607.05 billion, N509.47 billion, and N482.04 billion respectively.
Local investors accounted for the majority of these transactions, contributing N1.83 trillion or 67.68 percent of the total value. Domestic retail investors traded N860.29 billion worth of equities, while institutional investors were responsible for N976.66 billion. Foreign investors, on the other hand, conducted N877.12 billion in trades, representing 32.32 percent of total market activity.
Investment analysts, including those from United Capital, noted a shift in interest toward defensive sectors such as consumer staples, telecommunications, and banking stocks. They also highlighted that investor behavior in the short term could be influenced by the upcoming Federal Government bond auction. While retail interest may sustain mid- and small-cap stocks, institutional activity is expected to remain cautious.
A closer look at April’s performance revealed a 39.22 percent increase in total transactions compared to April 2024. Domestic investors dominated the month, outperforming their foreign counterparts by approximately 74 percent. However, foreign transactions saw a sharp 90.99 percent drop from March to April, attributed mainly to the absence of large block trades that had previously boosted March’s figures.
Despite some pressure in sectors like oil and gas and banking, analysts from Futureview expect a modestly bullish market outlook. Investor positioning is projected to remain reactive to macroeconomic signals, corporate performance, and opportunities in undervalued stocks, with the bond auction serving as a major influence on short-term sentiment.
Source: Business day