Equities market gains N1.95trn in January as investors position for growth
BY MOTOLANI OSENI
The Nigerian equities market recorded a N1.95 trillion gain in January 2025, driven by fresh capital inflows and strategic investor positioning.
During the month, Access Holdings, Guaranty Trust Holding Company (GTCO), FCMB Holdings, and Lasaco Assurance collectively listed N716.09 billion worth of additional shares on the Nigerian Exchange (NGX), bolstering market liquidity. Access Holdings led with a N351.009 billion listing, followed by GTCO with N209.417 billion, FCMB Group with N144.56 billion, and Lasaco Assurance with N11.100 billion from a private placement offer.
As a result, the NGX market capitalisation rose from N62.763 trillion at the start of January to N64.709 trillion by month-end. Similarly, the NGX All-Share Index gained 1.53 per cent, closing at 104,496.12 basis points from the 102,926.40 points it opened the year with.
Despite the market’s overall gain, trading remained cautious, with investors favouring stocks in the oil & gas, insurance, and industrial goods sectors while large-cap stocks experienced sell-offs. Analysts attributed this trend to lingering economic uncertainties.
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Investment banker and stockbroker Tajudeen Olayinka noted that the market’s performance in January was subdued due to a delayed year-end rally, which stemmed from prolonged regulatory approvals for capital raising exercises by banks. He cited the Central Bank of Nigeria’s (CBN) extended capital verification process as a key factor limiting market liquidity.
On external influences, Olayinka dismissed concerns over potential impacts from U.S. President Donald Trump’s policies, stating that Nigeria’s import-dependent economy remains relatively insulated from tariff adjustments.
Arthur Steven Asset Management Limited Managing Director, Olatunde Amolegbe, highlighted key drivers of market growth, including ongoing bank recapitalisation, new listings, and anticipated monetary policy easing by the CBN. He noted that stable policies and Nigeria’s market attractiveness could spur increased foreign portfolio investments.
Amolegbe also pointed to upcoming high-profile listings, such as Nigerian National Petroleum Company Limited and Dangote Refinery, as catalysts for enhanced liquidity and broader investment opportunities. However, he cautioned that economic growth, monetary policy direction, and corporate earnings would shape the market’s trajectory.
Looking ahead, analysts at InvestData Consulting Limited expect mixed sentiments in February as investors react to corporate earnings reports and adjust their portfolios amid inflationary pressures. Chief Operating Officer Ambrose Omordion advised investors to take advantage of price corrections and value opportunities while monitoring global and domestic market trends.
