Equities market gains N13.2trn in H1 2025 on renewed investor confidence
BY TEMITOPE ADEBAYO
The Nigerian equities market recorded a robust gain of N13.199 trillion in the first half (H1) of 2025, driven by renewed investor confidence and improving market sentiment. This surge pushed the market capitalisation from N62.763 trillion at the start of the year to N75.962 trillion as of June 27, 2025.
Alongside this growth, the Nigerian Exchange (NGX) Limited All-Share Index (ASI) climbed by 16.58 per cent, rising from 102,926.40 points on December 31, 2024, to 119,995.76 points at the end of June.
The strong momentum was largely attributed to investor reactions to mixed corporate earnings and ongoing federal government reforms that have signalled policy stability and potential economic growth.
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Sectoral performance remained largely bullish. The NGX Consumer Goods Index led the pack with a 51.02 per cent growth in H1. This was followed by the NGX Pension Index, which rose by 28.95 per cent, and the NGX Premium Index, which gained 19.54 per cent.
Other notable performers included the NGX Banking Index (19.36 per cent), NGX 30 (16.22 per cent), NGX Insurance (4.50 per cent), and NGX Industrial Goods (2.27 per cent). Conversely, the NGX Oil and Gas Index was the only major laggard, falling by 9.86 per cent in the period under review.
As the market transitions into the second half of the year (H2), analysts at United Capital Plc anticipate a continued upward trend, driven by excess liquidity in the financial system and investor positioning for the upcoming Q2 earnings season.
According to the firm, stocks with strong foreign exchange gains, cost control measures, consistent growth outlooks, and potential for interim dividend payments are likely to attract increased attention.
However, United Capital cautioned that a possible Open Market Operations (OMO) auction could shift some capital away from equities into fixed-income instruments, particularly if yields remain attractive.
Elevated inflation, high interest rates, a weak naira, and ongoing global and domestic uncertainties are also expected to moderate investor sentiment. Retail investors are likely to take profits from recent gains, possibly slowing the market’s upward momentum. The firm advised investors to remain selective, focusing on fundamentally sound stocks with strong interim dividend prospects.
Cowry Asset Management Limited echoed a similar outlook, noting that while the market has posted strong gains, it may now be entering overbought territory. A mild pullback, particularly in large-cap stocks, is anticipated and could help consolidate gains and set the stage for another rally.
The firm highlighted signs of quarter-end window dressing and bargain hunting, particularly as investors prepare for earnings season and await policy signals from the Central Bank of Nigeria’s July monetary policy meeting.
Despite the potential for short-term volatility, Cowry Assets maintained that investors should prioritise companies with resilient earnings and long-term value, especially amid the evolving macroeconomic landscape.
