May 04, (THEWILL) – Investors in the Nigerian equity market gained N3.73 trillion in four months (January – April 2025), fueled by robust sectoral earnings and the stability the Central Bank of Nigeria (CBN) monetary policies offered.
A review of the trading activities on the Nigerian Exchange revealed that the local bourse appreciated by N3.73 trillion by market capitalisation in the first four months of 2025 to close at N66.496 trillion as of April, 30, 2025.
Capital market analysts attributed the stock market N3.7 trillion growth to impressive 2024 performance by listed companies and the recovery of some companies in their first quarter ended March 31, 2025 corporate earnings released on the Exchange.
The stock market has seen the Monetary Policy Committee of the Central Bank of Nigeria (CBN) retaining the benchmark interest rate at 27.50 per cent, inflation moving to 24.23 per cent as of March 2025.
In addition, it gained N239.03 billion in April 2025 from N66.257 trillion it opened for trading to close at N66.496 trillion.
The NGX All-Share Index closed April 30, 2025 at 105,800.85 basis points, representing an increase of 2,874.45 basis points or 2.8 per cent from 102,926.40 basis points the equities market closed for trading in 2024.
In January, the NGX ASI increased by 1.53 percent, rising from 102,926.40 to 104,496.12 points. February saw a more substantial gain of 3.09 percent, closing at 107,723.22 points.
However, in March, the index dropped 1.91 percent, bringing the index down to 105,660.64 points as of the end of the first quarter of 2025. Despite the minor correction, the overall market performance in Q1 remained positive, reflecting investor confidence and sectoral resilience.
The sectoral performance in Q1 2025 reflected mixed sentiments, shaped by evolving market and macroeconomic events. The CBN-led banking sector recapitalisation sparked heightened investor interest in the banking stocks leading to a 6.96% increase in Q1 2025.
During this period, banks collectively raised approximately N2.4 trillion in fresh capital, reinforcing market confidence and driving sectoral growth.
This has driven a rally in the sector and contributed to the broader market uptrend, as most banks are currently in the second phase of their recapitalisation plans.
With inflation rate at 24.23 per cent as of March 2025— driven by the CPI rebasing — and the Monetary Policy Committee (MPC) decision to hold rates in line with expectations, capital market analysts have hinted at further stock market appreciation in the remaining months of second quarter of 2025.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
