The Nigerian Exchange Limited (NGX) recorded a N3.73 trillion increase in market capitalisation between January and April 2025, closing at N66.496 trillion on April 30, 2025.
This represents a 5.9% rise from the N62.76 trillion recorded at the beginning of the year, driven by strong corporate earnings from 2024 and improved first-quarter results from several listed companies.
Market analysts attributed the growth to sustained investor confidence, boosted by the Monetary Policy Committee’s decision to retain the benchmark interest rate at 27.50%, as well as easing inflation, which stood at 24.23% in March 2025.
The listing by introduction of Legend Internet Plc, fresh capital injections by banks, and steady dividend declarations also contributed to the market’s positive performance.
Monthly data showed the market gained N1.95 trillion in January, followed by a further N2.48 trillion increase in February. However, March saw a dip of N936 billion as investors temporarily turned to money market instruments. The market rebounded in April, gaining N239.03 billion.
The NGX All-Share Index (ASI) closed at 105,800.85 points on April 30, up 2.8% from 102,926.40 points at the end of 2024.
Commenting on the trend, Aruna Kebira, Managing Director of Globalview Capital Limited, said key macroeconomic indicators—particularly stable interest rates and moderating inflation—offered investors a more favourable environment. He also pointed to strong dividend payouts by top banks, such as Zenith Bank (N4.00), UBA (N3.00), and GTCO (N7.03), as key market drivers.
Kebira noted that the second quarter’s performance would depend on how companies’ Q1 2025 earnings compare to the same period in 2024. He also observed improving liquidity and investor participation, which could sustain bullish sentiment.
Similarly, analysts at Cordros Research expressed optimism about the market’s outlook, citing the MPC’s pause on rate hikes and the potential for policy easing. They expect increased investor interest in growth sectors like manufacturing, and a rise in foreign portfolio investments, which climbed from 11.5% in 2023 to 15.3% in 2024.
Nzubechukwu Eze.
