The Nigerian equities market began 2025 on a strong note, with the total market capitalisation gaining an impressive N1.25 trillion in four trading days.
The market operated for only four days last week, as Wednesday, January 1, 2025, was declared a public holiday by the federal government to mark New Year’s Day.
Despite this robust start, the All-Share Index (ASI) declined by 1.42% week-on-week (W-o-W) to close at 103,586.33 points, while the market capitalisation dropped by N1.25 trillion W-o-W to settle at N63.166 trillion.
Capital market analysts attributed the buoyant start to renewed investor confidence and optimism. They highlighted increased position-taking in fundamentally strong stocks and active trading as key factors contributing to the upbeat market sentiment.
“The strong opening to the year builds on the market’s remarkable performance in 2024, where it achieved a 38% annual gain. Last week’s rally was particularly driven by significant buying interest in the insurance and consumer goods sectors.
“Investors are strategically positioning themselves ahead of anticipated earnings growth and interim dividend declarations for 2024. The 2.02% week-on-week rise in market capitalisation underscores the resilience of Nigerian equities despite ongoing economic challenges, with mid-to-large-cap stocks playing a pivotal role in driving this growth,” analysts noted.
Market activity for the week showed a negative market breadth, with 82 equities appreciating in price, 18 declining, and 52 remaining unchanged.
Prestige Assurance led the gainers with a 46.00% increase to close at N1.46 per share. Neimeth International Pharmaceuticals followed with a 45.26% gain to close at N2.76, while Sovereign Trust Insurance rose by 45.16% to close at N1.35 per share.