Despite the domestic economic uncertainties, the nation’s equities market started 2025 on a bullish note, gaining N1.95 trillion at the end of January this year.
The market capitalisation, which closed the year on December 31, 2024 at N62.763 trillion, appreciated by 3.09 per cent to N64.709 trillion on January 31, 2025.
Also the Nigerian Exchange Limited (NGX) All-Share Index (ASI) closed higher at 104,496.12 points, recording an increase of 1,569.72 basis points, representing 1.53 per cent growth from 102,926.40 points it opened for the year.
The positive performance comes amid macroeconomic challenges, including inflation, and rising insecurity.
Capital market operators attributed the current positive performance to the ongoing bank recapitalization process, anticipated monetary policy easing by the Central Bank of Nigeria (CBN), and expected high-profile listings such as the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery.
While challenges such as exchange rate volatility and inflation continued in the nation’s economic system, key sectors, including banking, consumer goods, and industrials, are expected to drive market performance and deliver strong returns for investors in the year.
Managing Director/Chief Executive Officer, Arthur Steven Asset Management Limited, Olatunde Amolegbe, said that the Nigerian stock market is set for bullish 2025 as investors position ahead of 2024 financial year results and dividend declarations, especially in the banking sector.
He said market performance will depend on key factors, including economic growth trajectory, monetary policy direction, and corporate earnings performance.
“Despite concerns around exchange rate volatility and inflation, conservative sectors such as banking, consumer goods, and industrials are expected to perform well.”