·                     NGX capitalisation jumps 41.4% to N88.77trn

·                     FX stability, bold reforms, corporate resilience fueling rally

·                     Analysts project market to cross N100trn mark before end of 2025

Kayode Tokede

With renewed confidence, the stock market has delivered a stunning performance, gaining N26.01 trillion in just eight months.

Driven by strong investor appetite, bold policy shifts, and a wave of corporate resilience, the rally signals not just numbers on the trading board but a broader story of optimism and recovery.

Specifically, the market capitalisation that opened 2025 at N62.763 trillion, gained N26.01 trillion or 41.43per cent in eight months to close yesterday, the last trading day in August at N88.769 trillion.

Also, the Nigerian Exchange Limited All-Share Index (NGX ASI) closed yesterday, at 140,295.50 basis points, advancing by 37,369.10 basis points or 36.31 per cent year-to-date (YtD) from 102,926.40 basis points it closed for trading in 2024.

Capital market analysts attributed the stock market N26.01 trillion growth to stability in the foreign exchange market, companies recovering from foreign exchange losses, market liquidity, capital inflow, dominance of domestic investors, increasing portfolio investment, Central Bank of Nigeria’s (CBN) banking sector recapitalisation, and insurance sector reforms. All these, they pointed out, have played  critical role in overall stock market appreciation in the growth so far in the first eight months of 2025.

So far in 2025, the stock market has seen the Monetary Policy Committee of the CBN retaining interest rate at 27.50 per cent, inflation rate moving to 21.88 per cent as of July 2025 from 15.44per cent in December 2024, listing by introduction of Legend Internet Plc and banks announcing the outcome of fresh capital raising on the  Exchange.

Also, yield on Nigerian Treasury Bills  (NTB) has dropped to 15.61 per cent as of July 2025 from  18.00 per cent. 

In the eight months under review, several stocks listed on the NGX have recorded strong month-to-date appreciation, reflecting heightened foreign investor confidence driven by improved macroeconomic indicators and robust corporate earnings.

THISDAY checks showed that out of the N88.769 trillion market capitalisation, BUA Foods Plc contributed 11.96 per cent when its market capiitalisation closed yesterday, at N10.62 trillion, followed by MTN Nigeria Communications Plc that contributed 10.3 per cent amid N9.13 trillion market capitalisation as of August 29, 2025. 

The growth in BUA Foods stock price impacted on NGX Consumer Goods Index on the NGX to emerge as the best performing index, while the NGX Oil & Gas Index maintained its position as the worst performing index on NGX.

As NGX Consumer Goods Index appreciated by 84.24per cent YtD, NGX Oil & Gas plummeted to -12.19 per cent in its YtD performance. 

Capital market analysts noted that the corporate earnings reports of H1 2025, among other factors, encouraged investors seeking high returns in a volatile macro environment.

The Managing Director, Globalview Capital Limited, Mr. Aruna Kebira in a chat with  THISDAY,  noted  that the  stock  market  in the eight months of 2025, benefitted from drop in inflation, among others.

“The yields in the money market are not looking as attractive as they were in 2024, making discerning investors in search of better yields 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 is not always fixed income friendly,” he added.

He predicted that the stock market in  September 2025, would be hinged on the quality of the audited half year results and account of Zenith Bank Pl, among others.

“If the various issuers demonstrate a performance higher than the corresponding period of 2024 and declare an impressive interim dividend, the stock  market will move to appreciate their prices.

“I also see an improvement in the liquidity around the stock market arena, which will boost market participation and invite the bull into the market,” he added.

For his part, the Managing Director and Chief Executive Officer, APT Securities and Funds Limited, Kasimu Garba Kurfi, projected that the market capitalisation was expected to surpass the N100 trillion mark by the end of 2025, buoyed by foreign exchange stability, strong corporate fundamentals, and increased primary market activities.

Kurfi identified key drivers of the 2025 market rally, including the elimination of foreign exchange-related losses by companies.

He pointed out that in 2024, listed firms posted pre-tax FX losses of N507.2 billion, up from N359 billion in 2023, representing a combined N867 billion in losses.

“In 2025, we have seen zero FX losses due to exchange rate stability, and this has significantly boosted investor confidence,” he said.

The APT Securities boss said the signing of the Nigerian Insurance Industry Reform Act (NIIRA 25) has triggered a rally in insurance stocks, while the CBN’s bank recapitalisation programme has revived the primary market, attracting over N2 trillion in 2024, with similar volumes anticipated in 2025.

Capital market analysts noted that sustaining this momentum in the remaining of 2025 will depend on the continuation of stable and credible economic policies.

The Vice President, Highcap Securities, David Adonri noted that the equities market so far in 2025 has witnessed massive interest in the recovering major stocks such as Airtel Africa, Nestle Nigeria Plc, Nigerian Breweries Plc, Cadbury Nigeria Plc, MTN Nigeria Communications Plc, and others which propelled the rally.

In addition,  analysts at Cordros Research stated that, “We believe the domestic equities market might respond positively to the MPC’s decision to pause interest rate ikes as investors assess the likelihood of policy easing in the medium term.

 “We also expect to see some rotation into sectors positioned for expansion in a lower-rate environment, particularly the manufacturing sector, as lower financing costs, improved input cost dynamics, and stronger consumer demand enhance growth prospects, making the sector more attractive to investors

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