Emmanuel OchayiThe Nigerian stock market closed January 2025 with strong gains, as the All-Share Index (ASI) jumped by 1,567.55 points to settle at 104,496.12 points. This represents a 1.52% increase from the month’s opening figure of 102,928.57 points.
Market analysts attributed this growth to strong rallies in the banking and consumer goods sectors.
Join our WhatsApp Channel“Investors showed great confidence in banking stocks, which saw major gains,” said Bola Adewole, an investment analyst. “We also saw positive movements in consumer goods stocks, with key players like Vitafoam and Honeywell Flour Mills recording impressive returns.”
Strong Trading Volume and Market Capitalization Growth
The market saw increased trading activity, with 12.6 billion shares exchanged throughout the month, surpassing the 10.8 billion shares traded in December 2024.
In addition, market capitalization grew from N63 trillion at the start of the month to N64.7 trillion by January 31st.
“The rise in market capitalization reflects increased investor participation,” said stockbroker Emmanuel Okonkwo. “We saw a lot of buying interest in the last two weeks of the month.”
Sector Performance in January
The banking sector was a major driver of market gains, with the NGX Banking Index rising by 9.47%. Stocks like Wema, FCMB, Fidelity, and Stanbic saw increases of over 10%.
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“We witnessed strong investor interest in the banking sector,” said financial analyst Adebayo Ogunleye. “Many banks reported strong quarterly results, which boosted their share prices.”
The NGX Consumer Goods Index also performed well, gaining 4.31% in January. Vitafoam, Northern Nigerian Flour Mills, and Honeywell Flour Mills led the gains, each rising by more than 25%.
On the other hand, some sectors recorded losses. The NGX Insurance Index dropped by 9.91%, and the NGX Industrial Goods Index fell by 8.51%. Dangote Cement, a major stock in the industrial sector, declined by 17%.
Top Gainers and Losers in the stock market
SCOA Nigeria led the gainers with a 97.57% increase, while CHELLARAM rose by 76.49%. Other major gainers included:
- Honeywell Flour Mills: Up 52.06% to N9.58
- NCR Nigeria: Up 46.00% to N7.30
- University Press: Up 45.45% to N5.60
- Trans-Nationwide Express: Up 44.93% to N2.00
On the losing side, Sunu Assurances recorded the biggest decline of 46.51%, followed by EUNISELL INTERLINKED, which dropped by 30.05%.
Other significant losers included:
- MRS: Down 25.21% to N162.90
- Veritas Kapital: Down 21.01% to N1.09
- Dangote Cement: Down 17.71% to N394.00
Corporate Actions and Stock Market Outlook
Several companies made key announcements in January:
- GTCO PLC raised N209 billion in the first phase of its equity capital program.
- MTN Nigeria secured N42.20 billion through commercial paper issuance.
- Oando PLC expanded its African portfolio with a new acquisition in Angola.
Looking ahead, analysts predict the stock market will maintain its bullish trend.
“We expect the All-Share Index to test the 105,000-point mark in February,” said market strategist Tunde Adesina. “With positive earnings reports coming in, investors will likely remain optimistic.”
The stock market remains a focal point for investors, as they monitor trends and look for new opportunities in 2025.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
