Expert Predicts 39% Stock Market Growth in 2025: Key Drivers & Sector Outlook
The Nigerian stock market is set for a bullish ride in 2025, with a projected 39% growth, according to capital market expert Olatunde Amolegbe, Managing Director of Arthur Steven Asset Management Limited (ASAM). Speaking at the Capital Market Correspondents Association of Nigeria (CAMCAN) 2024 market review and 2025 outlook event in Lagos, Amolegbe highlighted several factors that could drive this anticipated surge.
Key Drivers of the Projected Growth
✅ Bank Recapitalization Boost
• The ongoing recapitalization of banks is expected to strengthen investor confidence, attract fresh investments, and enhance sector stability.
✅ Major Listings to Deepen Market Liquidity
• High-profile IPOs, including Nigerian National Petroleum Company Limited (NNPC) and Dangote Refinery, are set to broaden investment opportunities and boost market liquidity.
✅ Monetary Policy Easing & Foreign Investments
• With expectations of a looser monetary stance by the Central Bank of Nigeria (CBN), investors may shift toward equities as fixed-income yields decline.
• Nigeria’s stock market remains relatively attractive to foreign portfolio investors (FPI)—provided there is policy stability.
✅ Dividend Season & Positive Sentiment
• Investors are strategically positioning themselves ahead of 2024 fiscal year results and dividend declarations, particularly in the banking sector.
✅ Sector-Specific Growth Trends
• Banking, consumer goods, and industrials are expected to remain conservative bets, offering steady returns despite inflation concerns.
• Palm oil giants, Okomu Oil Palm Company (OKOMUOIL) and Presco Plc, are projected to grow by 18%-25%, fueled by global demand, rising prices, and increased production volumes.
• Presco’s recent bond issuance to acquire Ghana Oil Palm Development Company Ltd. is expected to solidify its growth trajectory.
• The consumer goods sector is poised for a rebound, with lower inflation, a more stable FX environment, and supportive policies boosting recovery.
⚠️ Potential Risks & Challenges
Exchange rate volatility & inflation remain concerns that could impact market sentiment.
Economic growth trajectory & corporate earnings will play a crucial role in sustaining the bullish momentum.
Regulatory decisions & policy shifts could either accelerate or slow down investor confidence.
Final Thoughts
With recapitalization, strategic listings, and a shift toward equities, Nigeria’s stock market is gearing up for what could be a landmark year in 2025. However, the macroeconomic environment and policy direction will be key determinants of whether the 39% growth projection is realized.
Do you think the market will hit this target, or are there hurdles ahead? Let’s discuss in the comments! ⬇️
The Nigerian stock market is set for a bullish ride in 2025, with a projected 39% growth, according to capital market expert Olatunde Amolegbe, Managing Director of Arthur Steven Asset Management Limited (ASAM). Speaking at the Capital Market Correspondents Association of Nigeria (CAMCAN) 2024 market review and 2025 outlook event in Lagos, Amolegbe highlighted several factors that could drive this anticipated surge.
Key Drivers of the Projected Growth
✅ Bank Recapitalization Boost
• The ongoing recapitalization of banks is expected to strengthen investor confidence, attract fresh investments, and enhance sector stability.
✅ Major Listings to Deepen Market Liquidity
• High-profile IPOs, including Nigerian National Petroleum Company Limited (NNPC) and Dangote Refinery, are set to broaden investment opportunities and boost market liquidity.
✅ Monetary Policy Easing & Foreign Investments
• With expectations of a looser monetary stance by the Central Bank of Nigeria (CBN), investors may shift toward equities as fixed-income yields decline.
• Nigeria’s stock market remains relatively attractive to foreign portfolio investors (FPI)—provided there is policy stability.
✅ Dividend Season & Positive Sentiment
• Investors are strategically positioning themselves ahead of 2024 fiscal year results and dividend declarations, particularly in the banking sector.
✅ Sector-Specific Growth Trends
• Banking, consumer goods, and industrials are expected to remain conservative bets, offering steady returns despite inflation concerns.
• Palm oil giants, Okomu Oil Palm Company (OKOMUOIL) and Presco Plc, are projected to grow by 18%-25%, fueled by global demand, rising prices, and increased production volumes.
• Presco’s recent bond issuance to acquire Ghana Oil Palm Development Company Ltd. is expected to solidify its growth trajectory.
• The consumer goods sector is poised for a rebound, with lower inflation, a more stable FX environment, and supportive policies boosting recovery.
⚠️ Potential Risks & Challenges
Exchange rate volatility & inflation remain concerns that could impact market sentiment.
Economic growth trajectory & corporate earnings will play a crucial role in sustaining the bullish momentum.
Regulatory decisions & policy shifts could either accelerate or slow down investor confidence.
Final Thoughts
With recapitalization, strategic listings, and a shift toward equities, Nigeria’s stock market is gearing up for what could be a landmark year in 2025. However, the macroeconomic environment and policy direction will be key determinants of whether the 39% growth projection is realized.
Do you think the market will hit this target, or are there hurdles ahead? Let’s discuss in the comments! ⬇️