Kayode Tokede

The Nigerian stock market appreciated by N3.49 trillion in the first quarter (Q1) of 2025 as investors reacted to mixed 2024 corporate earnings by listed companies on the  Nigerian  Exchange  Limited  (NGX).  

The market capitalisation, when compared to Q1 2024, gained N18.2 trillion on the backdrop of federal government’s reforms.
Since the beginning of trading in 2025, the stock market has witnessed sentiment trading by investors but the banking sector recapitalisation of the Central Bank of Nigeria (CBN) sustained rally in listed banking stocks.
The market capitalisation that closed 2024 at N62.763 trillion, moved up by N3.49 trillion or 5.6 cent to close March 28, 2025, at N66.257 trillion.

A breakdown by THISDAY revealed that the stock market in January appreciated by N1.95 trillion, attributable to cautious trading by investors in some companies quoted on the Exchange.
In February 2025, it appreciated by N2.48 trillion to close at N67.193 trillion.
In addition, THISDAY’s checks showed that the stock market depreciated by N936 billion in March 2025 as investors shifted attention to money market instruments.

The Nigerian Exchange Limited All-Share Index (NGX ASI) advanced by 2,734.24 basis points or 2.66 percent to close March 28, 2025, at 105,660.64 basis points from the 102,926.40 basis points it opened for trading this year.
Managing Director, Globalview Capital Limited, Mr. Aruna Kebira, in a chat with THISDAY,  noted  that  the  stock  market  in  Q1 2025  witnessed the tanking of inflation figures with the  last reading at 23.18 per cent as against 24.48 per cent previously.
“That alone gives the capital market investors a moment of respite in Q1 2025.

“The yields in the money market are not looking as attractive as they were in 2024, making discerning investors in search of better yields to consider the capital market as their investment destination.
“In the last MPC, the MPR was retained, including other metrics. This is sending positive signals that as the inflation figure and money market yields are downward-looking, the MPC would have a reason to tinker the MPR downward. Which always is not fixed income friendly.

“The release of both the UFS and AFS of issuers into the market was another booster as 80per cent cannot be classified as lacklustre.
“Then, there was a follow-through with quality dividend declarations. We saw the banking sector pushing their limits with relish and are happy doing so.
“Zenith Bank and UBA declared N4.00 and  N3.00 final dividend, while GTCO declared a whooping N7.03 as final dividend,” he added.

On his part, the Vice  President,  Highcap Securities, Mr.  David Adonri, stated  that  the  Q1 2025 was positive for the equities market as it appreciated by about 2.7 per cent.
He said, “The two percent decline in March 2025 depressed the overall performance of the market in Q1 2025.
“It is believed that discordant tunes from the banking sector regarding the postponement of the release of their full-year results made the market bearish in March 2025.
“Although their results were impressive when they were released in the last week of the month, it was too late to reverse the damage that had been done.”