Stock market gains N3.49trn in 1Q amid banking recapitalization rally
Nigeria’s stock market recorded good performance in the first quarter (Q1) of 2025, surging by N3.494 trillion as investors reacted to mixed corporate earnings and financial sector reforms.
The market capitalisation of the Nigerian Exchange Limited (NGX) rose from N62.763 trillion at the start of the year to N66.257 trillion by March 28, fueled by optimism in banking stocks amid the Central Bank of Nigeria’s (CBN) recapitalisation directive.
Comparing the transactions to first quarter of 2024, the stock market added N18.2 trillion, reflecting growing investor confidence in the federal government’s economic policies.
The breakdown of the investment for the quarter showed that, in the month of
January 2025, the NGX gained N1.95 trillion, driven by cautious investor sentiment and selective stock picking.
Also in February 2025, The market surged by N2.48 trillion, pushing total capitalisation to a peak of N67.19 trillion.
But for the month of March, the market declined by N936 billion, as investors shifted focus to fixed-income instruments amid rising money market yields.
The Nigerian Exchange Limited All-Share Index (NGX ASI) climbed 2.66 per cent in the first quarter, closing at 105,660.64 basis points on March 28, compared to 102,926.40 at the start of the year.
The Key drivers behind first quarter market performance, include banking recapitalisation and dividend announcements.
The banking sector recapitalisation plan by the CBN spurred renewed investor interest. Banks like Zenith Bank, UBA, and GTCO declared robust dividends:,
Zenith Bank declared dividend ofN4.00 per share, UBA N3.00 per share and GTCO Plc to pay N8.03 per share
The decline in Nigeria’s inflation rate to 23.18 per cent in the first quarter of 2025, down from 24.48 per cent in the previous quarter, according to Capital operators provided relief to capital market investors.
They stated the monetary policy rate maintained at the same level by Monetary Policy Committee (MPC) of Central Bank of Nigeria helped to reinforce investor confidence in the market.
They however said that the market witnessed mixed banking sector earnings and delay in releasing reports.
Although the first quarter of 2025 financial results of banks were positive for the market, the delays in the release of full-year banking results weighed on investor sentiment in the month of March.
Operators noted that the delay initially led to a market downturn before earnings reports helped stabilize sentiment at the end of the quarter.
On the outlook of the market in the second quarter, market analysts predict continued momentum in the banking and financial services sectors, with investors watching closely for,
They are of the opinion with strong dividend payouts, moderating inflation, and sector-specific growth drivers, Nigeria’s stock market remains on track for further expansion in 2025.
