The Nigerian Exchange Limited gained N4.43 trillion in the first two months of 2025 as investors increased their stakes in blue-chip companies amid corporate earnings reports and dividend payouts.
The surge in demand for listed stocks was fueled by the Central Bank of Nigeria’s decision to lower interest rates on Treasury bills following a decline in inflation.
With fixed-income returns dropping, investors turned to equities, driving the market’s strong performance.
Analysts had anticipated a shift to the stock market, as Treasury bill investors had already started repricing yields downward despite tight liquidity in the financial system. This trend further boosted demand for equities, contributing to the N4.43 trillion gain in the NGX within the first two months of 2025.
The Nigerian stock market, which opened 2025 at N62.763 trillion, gained N4.43 trillion (7.1%) to close at N67.19 trillion by the end of February.
The growth, which influenced market performance in February, saw a gain of N1.95 trillion in January and N2.48 trillion in February.
As a result, the NGX All-Share Index (NGX ASI) rose by 4.76% (4,894.99 points) in its Year-to-Date performance, closing at 107,821.39 basis points on Friday, up from 102,926.40 points at the end of 2024.
It was reported that in the first two months of 2025, the NGX Banking Index outperformed other indices, gaining 7.5% Year-to-Date to close at 1,165.71 basis points on Friday, up from 1,084.50 basis points.
On the other hand, the stock market has seen cautious buying from investors, particularly in the oil and gas and insurance sub-sectors.
The NGX Oil/Gas Index declined by 5.54% Year-to-Date (YtD), closing at 2,561.63 basis points from its opening at 2,712.06 basis points. Similarly, the NGX Insurance Index dipped by 0.24% YtD, closing at 716.28 basis points from 718 basis points.
With the lower inflation rate—driven by the CPI rebasing—and the MPC’s decision to hold rates as expected, capital market analysts anticipate further stock price appreciation in March 2025.
