Connect with us

Nigerian Exchange Limited

Nigerian Stocks Extend Rally Into 2025 as Investors Gain N1.94 Trillion in January

Published

on

Stock Bull - Investors King

The Nigerian equities market sustained its bullish momentum into 2025 with investors gaining N1.94 trillion in January as positive sentiment drove continued interest in listed stocks on the Nigerian Exchange Limited (NGX).

The market capitalization of listed equities, which stood at N62.77 trillion at the close of December 2024, rose to N64.71 trillion by the end of January 2025, marking a 3% gain within the month. Similarly, the All-Share Index (ASI) advanced by 1,569.72 points, or 1.5%, from 102,926.4 to 104,496.12, reflecting sustained confidence in the market.

The rally was primarily fueled by strong corporate earnings reports and anticipation of improved dividend declarations for the 2024 financial year. Investors remained upbeat, buoyed by expectations of attractive corporate benefits, reinforcing optimism in the local bourse despite global economic uncertainties.

Market analysts pointed to supplementary listings by Lasaco Assurance Plc and FCMB Group Plc, which contributed to a N1.06 trillion boost in investor wealth. Additionally, four out of the six major sectoral indices recorded positive year-to-date (YTD) performances, further underscoring the market’s broad-based strength.

The banking index led the charge, gaining 9.8%, followed by the consumer goods index, which appreciated by 4.5%. Several stocks emerged as standout performers, with Chellaram Plc leading the gainers’ chart after surging by 60.4%, while Vitafoam advanced by 31.5% amid strong investor accumulation. Betaglas and Northern Nigeria Flour Mills each posted 21% gains, while SKYAVN climbed by 20.7% as investors took strategic positions in expectation of continued earnings growth.

Market Experts Weigh In

Commenting on the market’s performance, Managing Director of Arthur Stephen Asset Management Limited, Olatunde Amolegbe, described the 1.5% rise in the All-Share Index as remarkable, considering that January is typically a slow month for investments.

He noted that trading volume and value showed a significant jump compared to the previous year, highlighting the growing interest in Nigerian equities.

“Looking forward, I believe the coming months will be interesting as we expect the release of earnings reports and declaration of corporate benefits by various companies. This will be expected to have a significant impact on market performance in February and March,” he said.

Similarly, Vice President of Highcap Securities Limited, David Adonri, observed that both the equities and bonds markets appreciated in January, signaling broader investor confidence across asset classes.

The sustained rally in the equities market reflects renewed investor optimism as corporate earnings continue to support market growth. With expectations of improved dividends and strategic positioning ahead of key financial disclosures, analysts anticipate further positive movements in the coming months.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Comments
Advertisement
Advertisement
Advertisement