Nigeria’s Equity Investors Gain N1.539tr In First 7 Trading Days Of 2025

Financial Liquidity Stays Strong

By Kingsley Ighomwenghian

 

Trading on the Nigerian Exchange Limited (NGX) carried over the bull-run of 2024, as the cumulative value of investors’ worth on the bourse (market capitalisation) increased by a robust N1.539 trillion iin the first seven trading sessions of 2025 (between January 2, when the trading resumed after the new year holiday, and Friday, January 10).

This development, analysts at Lagos-based investment banking group- Cordros Securities Limited, say is expected, given the strong financial system liquidity as seen from the first Open Market Operation (OMO) sales by the Central Bank of Nigeria (CBN) on Monday when it offered N500 billion worth of instruments to investors. Total subscription, however settled at N1.56 trillion, while the CBN opting to allot exactly what was offered at stop rates of 23.8 percent.

Daily Independent recalls that the NGX market capitalisation opened on January 2, 2025 at N62.763 trillion, closing at N64.302 trillion last Friday.

In the seven trading sessions, the composite All-Share index which measures the average share price movement on the NGX’s rose by 2,524.66 basis points or 2.45 percent, closing at 105,451.06bps, from 102,926.40bps at the close of trading for December 2024.

Of the total growth in investor’s worth on the equities’ market, a total of N1.137 trillion or 1.8% of the gain was recorded in the first full week of the year, just as the NGXASI, despite the slight decline on Friday.

Data from the NGX shows that investors in Multiverse Mining and Exploration recorded the scooped the biggest gain for the week, as its share price soared 53.42 percent up; ahead of Honeywell Flour Mill’s 31.67%; followed by broadcast giant- Daar Communications, 25.71 percent; just as MTN Nigeria, a major player in the nation’s telecom sector saw a 21 percent growth on the back of what analysts say is investors positioning for the anticipated hike in tariff hike that would result in revenue and profit growth for players in the sector

Last week also, total transaction volume on the bourse stood at 4.698 billion shares worth N85.043 billion in 72,562 deals, compared to the 2.618 billion shares valued at N69.742 billion in 47,953 deals in the previous week as activities seemed to pick up in the market..

The Financial Services Industry accounted for all of 3.470 billion shares or 73.86 percent of total volume, valued at N40.791 billion traded in 34,364 deals, boosted by 1.679 billion shares of Wema Bank Plc, FBN Holdings Plc and Universal Insurance Plc, worth N20.838 billion.

Cordros in a note to clients at the weekend expects that the market would maintain its positive momentum, amid “strategic positioning ahead of earnings releases, sector-specific developments, and potential policy updates.”

This, it says, will expectedly be boosted by the N270 billion inflows maturing from the Central Bank of Nigeria (CBN) Open Market Operations resulting in a decline in the OVN rate, barring any decision by the apex bank to mop-up liquidity.