Nigerian Inventory Market Data N1.95trn Acquire in January
Regardless of cautious buying and selling sentiment amongst traders, the Nigerian inventory market skilled a exceptional surge in January 2025, with its market capitalization growing by a big N1.95 trillion.
This emerged because the Minister of Finance and Coordinating Minister of the Financial system, Mr. Wale Edun, yesterday acquired a high-level delegation from JP Morgan, led by, Head of West Africa, Dapo Olagunju, because the West African nation seeks to ramp up funding inflows.
Additionally, regardless of the inclusion of 5 extra Organisation of Islamic Cooperation (OIC) international locations by Fitch Rankings to its Nation Teams for the Nation-Particular Therapy of Restoration Rankings, about 70 per cent of OIC international locations, together with Nigeria have retained their categorisation in Group D within the newest evaluation.
Particularly, the NGX market capitalisation added N1.95 trillion on the shut of buying and selling yesterday, rising from the N62.763 trillion it opened in 2025, to shut at N64.709 trillion on the finish of January.
When in comparison with January 2024, the market capitalisation gained N14.44 trillion.
Additionally, the NGX All-Share Index closed January 2025 at 104,496.12 foundation factors, about 1.53 per cent or 1,569.72 foundation factors 12 months-till-Date (YtD) larger from 102,926.40 foundation factors the inventory market opened for buying and selling this yr.
For the reason that starting of 2025, the inventory market has witnessed cautious buying and selling by traders, particularly within the Oil & fuel, insurance coverage and Industrial Items sub-sector, and it triggered huge sell-off in giant firm shares quoted on the bourse.
The NGX Industrial Items plummeted by -8.52 % YtD to shut at 3,267.66 foundation factors as of January 31 2025 following huge profit-taking in Dangote Cement Plc’s inventory value by 17.7 per cent YtD from N394 per share it opened for buying and selling to N478.80 per share as of January 31, 2025.
Additionally, the NGX Oil Fuel Items dropped by -1.61 in its YtD efficiency to 2,668.40 foundation factors over 4.8 per cent YtD decline in Aradel Holdings Plc to N569.3 per share as of January 2025 from N598 per share it opened for buying and selling this yr, as Totalenergies Advertising Nigeria Plc was down by 4.01 per cent to shut at N670 per share.
As well as, the NGX Insurance coverage index was down -1.10 per cent YtD on profit-taking in Sunu Assurances Nigeria Plc that dwindling considerably by 46.5 per cent from N10.75 per share it closed 2024 to shut January 31, 2025 at N5.75 per share.
Nonetheless, the end result of a profitable recapitalisation by some banks impacted on the NGX Banking index because it superior by 9.76per cent YtD progress to shut January 2025 at 1,190.35 foundation factors on aggressive demand for Zenith Financial institution Plc, Entry Holdings Plc Warranty Belief Holding Firm Plc.
In January 2025, the inventory value of Zenith Financial institution and GTCO superior by 11.2 % and seven.1 % to shut January 31, 2025 at N50.6 and N61.05 per share, respectively.
The inventory value of Entry Holdings moved from N23.85 per share in 2024 shut of market transactions, gaining about 9.01 % YtD to N26.00 per share, whereas United Financial institution for Africa (UBA) Plc appreciated by 10.88 per cent to shut January 2025 at N37.7 per share.
The Nigerian inventory market had closed 2024 NGX ASI with a formidable annual progress of 37.65 % amid double-digit inflation, Central Financial institution of Nigeria (CBN) growing its financial coverage charge to 27.50 per cent that led to excessive yield on authorities securities and unstable naira on the overseas alternate market.
Analysts said that the inventory market efficiency in January 2025, was a mirrored image of uncertainty within the home economic system.
The Funding Banker & Stockbroker, Tajudeen Olayinka in a chat said that inventory market efficiency in January 2025 was not spectacular because of 2024 year-end rally that got here somewhat too late and unimpressive.
On President Donald Trump’s insurance policies impacting the rising market, he stated, “I don’t see any adverse affect available on the market from Trump’s presidency as a result of Nigeria is an import- dependent nation, to not be severely affected by Trump’s wall of tariffs.”
Hitherto, the Managing Director Arthur Steven Asset Administration Restricted (ASAM), Mr. Olatunde Amolegbe, stated the inventory market progress in 2025, was underpinned by ongoing financial institution recapitalisation efforts, new listings, and anticipated financial coverage easing by the CBN.
Amolegbe, highlighted Nigeria’s relative market attractiveness as a key consider attracting elevated overseas portfolio inflows (FPI), supplied secure insurance policies are maintained.
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Total, his agency added that, “the 2025 outlook for the Nigerian inventory market stays optimistic, bolstered by strategic reforms, coverage changes, and enhancing investor confidence. Whereas challenges reminiscent of alternate charge instability and inflation persist, key sectors are positioned to drive market efficiency and ship robust returns for traders.”
Within the meantime, Wale Edun yesterday acquired a high-level delegation from JP Morgan, led by , Head of West Africa, Dapo Olagunju.
The assembly, which was held in Edun’s workplace in Abuja, was a part of a fact-finding journey organised by JP Morgan, aimed toward exploring funding alternatives and financial methods within the nation.
The delegation, which included main traders with vital holdings in Nigeria’s Eurobonds and native securities, was a part of an exploratory go to organised by JP Morgan for a various group of worldwide institutional traders searching for insights into the nation’s financial panorama.
The finance ministry, in an announcement by its Director, Press and Public Relations, Mohammed Manga stated in the course of the discussions, the minister highlighted Nigeria’s latest financial milestones, together with a profitable Eurobond transaction accomplished and not using a roadshow.
Edun attributed the achievement to a robust world investor engagement.
He emphasised President Bola Tinubu’s ongoing efforts to draw overseas funding by means of strategic worldwide engagements and reaffirmed the administration’s dedication to market-driven reforms.
Edun additionally pointed to key developments within the vitality sector, together with new agreements with the Worldwide Finance Company (IFC) aimed toward increasing electrical energy entry to 400,000 Nigerians within the first occasion.
On inflation, the minister assured traders that the CBN was implementing orthodox financial insurance policies whereas the federal government works to spice up agricultural manufacturing and stabilise meals costs.
Based on the assertion, the assembly between the Edun and the JP Morgan delegation marks a big step ahead in Nigeria’s efforts to draw overseas funding and stimulate financial progress.
Within the meantime, regardless of the inclusion of 5 extra OIC international locations by Fitch Rankings to its Nation Teams for the Nation-Particular Therapy of Restoration Rankings, about 70 per cent of OIC international locations, together with Nigeria have retained their categorisation in Group D.
Based on the most recent rankings, this group consists of nations the place recoveries given default vary from common to poor, underscoring ongoing challenges in restoration projections.
The whole variety of OIC international locations reported now stands at 19.
A restoration ranking refers to a credit standing assigned to a debt instrument that signifies a probability of recovering a good portion of the funding worth even when the entity defaults, which means the investor may nonetheless recoup some cash even within the case of chapter.
It displays the share of a mortgage or an obligation that shall be repaid to collectors within the case of default or chapter.
In Fitch’s Nation Teams for OIC, the United Arab Emirates (UAE) and Qatar proceed to have the very best classification among the many now 19 coated OIC international locations, in Group B the place recoveries given default vary from superior to poor.
That is adopted by Group C, the place recoveries given default vary from good to poor, and contains Saudi Arabia, Malaysia, Bahrain, and Oman.
International locations in Group D embrace Nigeria, Turkiye, Egypt, Indonesia, Bangladesh, Morocc, Tunisia, Azerbaijan, Jordan, Kazakhstan, Uzbekistan, Gambia, and Sierra Leone.
Not one of the 19 OIC international locations are in Group A, the place recoveries given default vary from excellent to poor.
Sukuk default charges globally are very low, at solely 0.19 per cent of all sukuk issued as of end-2024.
This was as a result of predominance of sovereigns and supranationals as sukuk issuers at 57 per cent amongst Fitch-rated sukuk, adopted by monetary establishments at 17 per cent.
The Federal Authorities of Nigeria (FGN) began the issuance of sukuk in September 2017, and has issued six Sovereign Sukuk bonds price N1.1 trillion (roughly $657.6 million) to finance 124 federal highway initiatives masking over 5,820 kilometres throughout the nation’s six geopolitical zones.
Fitch charges over 70 per cent of the worldwide excellent dollar-denominated sukuk, with 81.3 per cent being investment-grade and 91.3 per cent of sukuk issuers sustaining Steady Outlooks.
There stays decision uncertainty for each sukuk and bonds in lots of sukuk-issuing international locations, as a result of lack of precedents for default decision and the still-developing nature of the debt capital markets.
