Investors Gain N1.9 Trillion in January as Stock Market Rally Strengthens

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Olori Uwem

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Mar 18, 2024
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Investors Gain N1.9 Trillion in January as Stock Market Rally Strengthens

The bullish momentum in the Nigerian equities market continued into 2025, with investors pocketing an impressive ₦1.94 trillion in gains during January. This surge was fueled by strong corporate earnings, rising investor confidence, and expectations of generous dividend payouts for the 2024 financial year.

Market Performance Overview

As of January 31, 2025, the market capitalization of listed equities rose from ₦62.77 trillion at the end of December 2024 to ₦64.71 trillion, marking a ₦1.94 trillion or 3% increase. The All-Share Index (ASI), a key indicator of market performance, advanced by 1,569.72 points (1.5%), climbing from 102,926.4 to 104,496.12.

Despite global economic uncertainties, the Nigerian Exchange Limited (NGX) maintained its strong footing, largely due to:
• Impressive corporate earnings that attracted investors.
• Dividend expectations, as companies prepare to release financial results.
• Supplementary share listings, such as those by Lasaco Assurance Plc and FCMB Group Plc, which boosted investor wealth by an additional ₦1.06 trillion.

Sectoral Performance & Top Gainers

Four out of the six major indices posted gains, reflecting broad-based market strength:
• Banking Index: +9.8%
• Consumer Goods Index: +4.47%
• Oil & Gas Sector: Flat performance due to stable fuel prices

Several stocks saw remarkable price gains, including:
• Chellaram Plc: +60.4% (highest gainer)
• Vitafoam Nigeria Plc: +31.5%
• Beta Glass Plc & Northern Nigeria Flour Mills: +21% each
• Skyway Aviation Handling Company Plc (SKYAVN): +20.7%

Expert Insights & Market Outlook

Olatunde Amolegbe, Managing Director of Arthur Stephen Asset Management Limited, noted that January is usually a slow month for investments due to financial obligations like school fees. However, the strong 1.5% rise in the ASI was driven by a sharp increase in trading volume and value compared to the previous year.

Looking ahead, analysts expect the February–March period to be even more exciting as companies release their full-year earnings reports and declare corporate benefits, further influencing investor sentiment.

David Adonri, Vice President of Highcap Securities Limited, also highlighted that both equities and bonds appreciated in January, reinforcing investor confidence in the market’s resilience.

With corporate earnings season approaching, all eyes are now on dividend declarations and how companies will navigate the evolving investment landscape in 2025.