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By Chukwuma Umeorah
The Nigerian stock market recorded a N1.95 trillion gain in January 2025 despite cautious trading sentiment among investors on the Nigerian Exchange Limited (NGX). The market’s performance was influenced by selective sectoral movements, as profit-taking in Industrial Goods, Oil & Gas, and Insurance stocks dampened broader investor sentiment, while the banking sector witnessed a rally driven by investor confidence in financial institutions undergoing recapitalisation.
At the close of trading on January 31, 2025, the NGX market capitalisation had risen from N62.763 trillion at the start of the year to N64.709 trillion, reflecting a N1.95 trillion increase and marking a year-on-year gain of approximately N14.44 trillion. The NGX All-Share Index (ASI) recorded a 1.53 per cent increase, adding 1,569.72 basis points Year-to-Date (YtD) to close at 104,496.12 basis points from 102,926.40 basis points at the start of the year. However, the moderate growth suggested that investors remained cautious, given the macroeconomic uncertainties that characterised the market in the first month of the year.
While banking stocks led market gains, other key sectors faced significant sell-offs. The NGX Industrial Goods Index declined by 8.52 per cent YtD to 3,267.66 basis points, largely driven by a 17.7 per cent YtD drop in Dangote Cement Plc’s stock price, which fell from N394 per share at the start of the year to N478.80 per share by January 31, 2025, as investors moved to lock in profits. The Oil & Gas sector also experienced a downturn, with the NGX Oil & Gas Index shedding 1.61 per cent YtD to 2,668.40 basis points. Aradel Holdings Plc dropped by 4.8 per cent YtD, declining from N598 per share to N569.3 per share, while TotalEnergies Marketing Nigeria Plc recorded a 4.01 per cent decline, closing at N670 per share. Market analysts attributed the weakness in the Oil & Gas sector to global oil price volatility and sector-specific headwinds affecting downstream oil marketing firms.
The NGX Insurance Index also ended the month in negative territory, down by 1.10 per cent YtD, with Sunu Assurances Nigeria Plc leading the decline, plummeting by 46.5 per cent from N10.75 per share at the end of 2024 to N5.75 per share as of January 31, 2025, due to profit-taking by investors following a previous rally.
The banking sector, however, provided a strong performance, bolstered by renewed investor confidence in lenders’ ability to meet the Central Bank of Nigeria’s (CBN) recapitalisation requirements. The NGX Banking Index advanced by 9.76 per cent YtD to 1,190.35 basis points, reflecting strong demand for stocks such as Zenith Bank Plc, Access Holdings Plc, Guaranty Trust Holding Company Plc (GTCO), and United Bank for Africa (UBA) Plc. Zenith Bank’s stock price rose by 11.2 per cent YtD to close at N50.6 per share, while GTCO saw a 7.1 per cent YtD increase, ending January at N61.05 per share. Access Holdings gained 9.01 per cent YtD, climbing from N23.85 per share at the end of 2024 to N26.00 per share, while UBA appreciated by 10.88 per cent YtD to close the month at N37.7 per share.
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Despite the stock market’s gain in January, analysts believe that macroeconomic factors continue to shape investor sentiment. “The Nigerian stock market had ended 2024 with an impressive 37.65 per cent annual growth in the NGX ASI, but economic concerns persist, including high inflation, CBN’s tight monetary policy stance, and continued foreign exchange volatility. With the apex bank raising its Monetary Policy Rate (MPR) to 27.50 per cent, fixed-income investments have become more attractive, diverting some investor interest away from equities.” Additionally, the naira’s instability in the foreign exchange market has contributed to uncertainty, particularly affecting foreign investor participation.
Speaking on the market’s performance in January, Investment Banker and Stockbroker, Tajudeen Olayinka, noted that the slow start to the year was a result of the 2024 year-end rally, which came later than expected. According to him, “The stock market performance in January 2025 was not particularly impressive because the December rally arrived too late and did not generate sustained momentum into the new year.” He added that investors may remain cautious in the coming months, with corporate earnings reports and macroeconomic policy decisions playing a key role in shaping market direction.
Meanwhile, data for the previous trading week showed a total turnover of 3.245 billion shares worth N69.198 billion traded in 77,270 deals, reflecting an increase in market activity compared to the prior week, when 3.132 billion shares valued at N76.552 billion exchanged hands in 61,456 deals. The Financial Services Industry led in trading volume, accounting for 53.69 per cent of total equity turnover with 1.742 billion shares valued at N32.529 billion traded in 35,372 deals. The Services and Oil & Gas industries followed, with 748.205 million shares worth N1.560 billion and 264.682 million shares worth N16.786 billion, respectively.
The NGX-ASI gained 0.87 per cent week-on-week (wow) to close at 104,496.12 basis points, while market capitalisation rose by 1.67 per cent to N64.709 trillion. Sectoral performance showed mixed results, with the NGX Banking Index leading sectoral gains with a 2.54 per cent increase to 1,190.35 basis points,
Among the top gainers for the week, Chellarams Plc surged by 60.44 per cent to close at N6.53 per share, while Vitafoam Nigeria Plc gained 31.48 per cent to settle at N31.95 per share. Conversely, Veritas Kapital Assurance Plc led the laggards, shedding 29.68 per cent to close at N1.09 per share, while MRS Oil Nigeria Plc declined by 18.96 per cent to N162.90 per share. Trading activity for the week was also impacted by corporate actions, including the listing of 4.7 billion additional shares of Guaranty Trust Holding Company Plc following its public offer and the delisting of Tourist Company of Nigeria Plc and Union Homes Savings and Loans Plc due to non-compliance with listing standards.
