Stories by Chukwuma Umeorah
Trading on the Nigerian Exchange Limited (NGX) surged in March 2025, with foreign investors dominating transactions and pushing the total trade value beyond the N1 trillion mark.
According to the NGX’s latest Domestic and Foreign Portfolio Investment Report, overall market turnover grew by 118.95 per cent to N1.12 trillion in March, compared to N509.47 billion recorded in February. The sharp rise was largely attributed to block trades executed by foreign investors.
Foreign portfolio transactions skyrocketed by 1,541 per cent during the month, moving from N42.65 billion in February to N699.89 billion in March. In contrast, domestic transactions fell by 10.98 per cent, declining to N415.62 billion from N466.82 billion the previous month. Institutional investors contributed slightly more to the domestic trades, accounting for N218.50 billion, while retail investors made up N197.12 billion.
The report also revealed that foreign inflows and outflows were almost evenly matched in March, standing at N349.97 billion and N349.92 billion respectively, reflecting a balanced appetite for Nigerian equities among offshore investors despite the ongoing naira volatility.
Year-to-date figures show that foreign investors have pumped N814.05 billion into the local market between January and March 2025, making up 36.47 per cent of the total N2.23 trillion in transactions. Domestic participation remained dominant at 63.53 per cent, representing N1.42 trillion in trades.
When compared to the same period in 2024, where foreign investments accounted for just 13.77 per cent (N213.18 billion) of total transactions worth N1.55 trillion, the 2025 numbers demonstrate a remarkable surge in foreign interest.
On a year-on-year basis, turnover in March 2025 was 107.14 per cent higher than the N538.54 billion recorded in March 2024, reinforcing the market’s improved liquidity.
Despite the naira depreciating from N1,492.49/$1 in February to N1,536.82/$1 in March, foreign appetite for Nigerian equities remained resilient.
Long-term trends show that domestic trades have grown by 33.15 per cent over an 18-year span, rising from N3.56 trillion in 2007 to N4.74 trillion in 2024. Similarly, foreign trades increased by 38.31 per cent over the same period, from N616 billion to N852 billion.
While domestic investors accounted for 85 per cent of market activity in 2024, the narrowing gap observed in 2025 suggests that foreign players are steadily gaining more influence on the NGX.
The exchange noted that the strong foreign inflows in March were mainly driven by sizable block transactions typically linked to institutional investments and strategic portfolio adjustments. The market slowed considerably in February 2025, as total transactions fell by 16.07 per cent to N509.47 billion from N607.05 billion posted in January.
Meanwhile the equities market gained N966 billion in the four-day trading week ended Friday, April 25 2025, fueled by strong corporate earnings releases and sustained investor appetite for financial, consumer goods, and insurance stocks. The Nigerian Exchange Limited (NGX) All-Share Index (ASI) rose by 1.46 per cent to close at 105,752.61 points, while the market capitalization increased to N66.465 trillion.
The positive performance lifted the market’s year-to-date return to 2.75 per cent, signaling growing investor confidence. Analysts attributed the gains to robust first-quarter (Q1) results, with Cowry Asset Management noting, “Looking ahead, we expect the bullish sentiment to persist into the coming week as investors continue to react positively to ongoing corporate earnings releases.”
Trading strengthened compared to the prior week, with a total turnover of 1.854 billion shares worth N56.025 billion recorded in 51,386 deals. This represented a 21.6 per cent increase in volume and a 30.3 per cent rise in value relative to the previous week’s performance.
The Financial Services sector dominated activity, accounting for 68.28 per cent and 52.48 per cent of the total equity turnover volume and value respectively. Top-traded stocks by volume included Fidelity Bank Plc, Access Holdings Plc, and Guaranty Trust Holding Company Plc, which jointly contributed 43.03 per cent to total volume.
Sector performance was broadly positive. The NGX Consumer Goods Index led sectoral gains, appreciating by 8.65 per cent week-on-week, buoyed by strong performances in stocks such as International Breweries Plc, NASCON Allied Industries Plc, and Cadbury Nigeria Plc. The NGX Insurance Index rose by 7.30 per cent, while the NGX Banking Index gained 5.06 percent amid renewed interest in banking stocks.
Conversely, the NGX Industrial Goods Index fell by 3.44 per cent, while the NGX Oil and Gas Index dropped marginally by 0.07 per cent, dragged by declines in heavyweights such as Dangote Cement Plc and MRS Oil Nigeria Plc.
In terms of individual stock performance, International Breweries Plc emerged as the top gainer, rising by 40 per cent, followed by NASCON Allied Industries Plc (+26.22 per cent), Africa Prudential Plc (+25.64 per cent), and Vitafoam Nigeria Plc (+21.22 per cent). On the losers’ chart, VFD Group Plc suffered the steepest loss of 82.19 percent, trailed by John Holt Plc (-18.6 per cent) and Dangote Cement Plc (-10 per cent).
The week also witnessed a positive market breadth with 64 gainers against 27 losers, indicating a strong bullish sentiment across board. Analysts cautioned, however, that while the current rally is earnings-driven, macroeconomic headwinds and profit-taking tendencies may temper gains in select segments.