The Nigerian stock market commenced 2025 on a positively boisterous note, with investors recording N1.25 trillion price appreciation on the value of equities listed on the Nigerian Exchange Limited in the opening week of the year.
Despite trading for only four sessions during the week ended on Friday 3, January, 2025, as against the five usual trading sessions per week, the market’s benchmark index, the NGX All-Share Index recorded a strong 1.42 percent week-on-week (w/w) gain to close at 103,586.33 points.
Commenting on the performance, market analyst at Cowry Assets Management Limited said, “This remarkable start to the year reflects renewed investor confidence and optimism, driven by heightened position-taking in stocks with robust fundamentals and vibrant trading activities marking the beginning of the year.”
The analysts added that, “The market’s upbeat tone builds on its impressive performance in 2024, during which it achieved a 38% annual gain.”
Meanwhile, a keen analysis of the market performance revealed that the ASI’s rally during the week under review was primarily supported by significant buying interest across key sectors, notably the insurance and consumer goods sectors.
According to the analysts, the surge is an indication that investors are positioning themselves strategically ahead of potential earnings growth and anticipated interim dividend announcements for 2024.
In tandem, the market capitalisation climbed by 2.02 percent w/w to N63.17 trillion, adding an impressive N1.25 trillion in value.
“This underscores the resilience of Nigerian equities, even amidst persisting economic challenges. Mid-to-large-cap stocks were particularly instrumental in driving this performance, reflecting their strong demand,” Cowry Assets analyst stated.
Trading activities were vibrant as the market entered the New Year, with weekly traded volume and value surging by 88.8 percent and 34.1 percent, respectively, to 2.62 billion shares valued at N69.74 billion. These transactions were executed through 47,953 trades, representing a 43.5% increase from the previous week.
The Sectoral performance painted a broadly positive picture, with four of the five major indices under review closing higher.
The NGX-Insurance sector emerged as the standout performer, surging by an impressive 26.91 percent, supported by strong price appreciation in stocks such as PRESTIGE, SOVREN INS and CORONATION. The NGX-Consumer Goods, NGX-Banking, and NGX-Industrial Goods indices also recorded gains of 2.16 percent, 0.58 percent, and 0.5 percent, respectively, driven by positive sentiment in stocks like TANTALIZER, MULTIVERSE, HONYFLOUR, STERLING, and WEMABANK.
Conversely, the NGX-Oil and Gas index was the only laggard, slipping by 0.45 percent w/w due to sell-offs in TOTAL, ETERNA and OANDO.
The top-performing stocks for the week included PRESTIGE, NEIMETH, SOVRENINS, CORONATION and UNIVERSAL INSURANCE, up by 46 percent, 45.3 percent, 45.2 percent, 44.9 percent and 43.6 percent respectively.
On the flip side, the worst performers were PZ CUSSONS, CWG, UNIONDICON, NGXGROUP, and CADBURY, shedding 13.8 percent, 10.8 percent, 10 percent, 9.2 percent and 6.5 percent of their share prices respectively.
Also commenting on the market performance for the week, the Chief Executive Officer of Globalview Securities Limited, Aruna Kabira said, “This robust start to 2025 underscores the growing appeal of the Nigerian Exchange as a hub for portfolio diversification. Sectors such as insurance, banking, consumer goods, and industrial goods saw notable investor interest, with a focus on stocks poised to deliver substantial returns in the near term.
“Looking ahead, market sentiment remains bullish, although some profit-taking could moderate gains in the short term. Overall, the outlook for 2025 is optimistic, with expectations of sustained investor confidence and market resilience. Thus, we continue to advise investors to take positions in stocks with strong upsides and fundamentals.”
