Nigeria’s Stocks Increase by N2.5 Billion in February
Nigeria’s listed equities rose by N2.5 billion in February, an increase of 3.18%. This growth was supported by investments in industrial, consumer goods, and insurance stocks, despite declines in oil, gas, and banking sectors. The NGX All-Share Index closed at 107,821.39 points with a market capitalization of N67.193 trillion by month’s end. Analysts project continued buying interest during the earnings season amidst fluctuating market conditions.
In February, Nigeria’s listed equities experienced an increase of approximately N2.5 billion, marking a rise of 3.18 percent despite mixed trading conditions characterized by both bargain hunting and profit-taking. This growth was primarily driven by investments in industrial, consumer goods, and insurance sectors, although oil & gas and banking stocks faced significant declines. The Nigerian Exchange Limited (NGX) All-Share Index (ASI) improved from 104,496.12 points and a market capitalization of N64.708 trillion at the beginning of the month to 107,821.39 points and N67.193 trillion by month-end on February 28.
Supporting this positive movement, the NGX recorded an uptick in buy-side activities, despite notable market volatility. The listing of Zenith Bank Plc’s hybrid offer, which included rights issues and a public subscription of ordinary shares at N36 and N36.50 per share respectively, contributed to market dynamics. By maintaining focus on stocks with substantial fundamentals, investors facilitated an upward trend in the Lagos Bourse, yielding a +4.76 percent year-to-date (YtD) return.
During February, the National Bureau of Statistics (NBS) released a report indicating a decrease in Nigeria’s headline inflation rate to 24.48 percent in January, down from 34.80 percent in December 2024 following the rebasing. Furthermore, the Monetary Policy Committee (MPC) concluded its 299th meeting by holding the Monetary Policy Rate (MPR) steady at 27.50 percent, and maintaining the asymmetric corridor around it. Other monetary tools remained unchanged, including the Cash Reserve Ratio (CRR) and liquidity ratio.
Market analysts from Meristem projected that the unchanged monetary policy stance might instill some optimism, influencing positive sentiments toward equity assets. They highlighted the ongoing earnings season as a potential catalyst for increasing buying interest as investors align themselves for forthcoming company financial results and dividend announcements.
However, during the final week of February, Nigeria’s equities market faced a slight downturn with a decrease of 0.62 percent as investors predominantly offloaded shares in banking, insurance, and oil & gas sectors. The week concluded unfavorably, as the anticipated dip buyers did not materialize to support the market during this trading period.
In summary, Nigeria’s equities market demonstrated resilience in February by increasing its value by N2.5 billion, driven primarily by industrial, consumer goods, and insurance sectors. Despite challenges from declines in banking and oil & gas stocks, investor sentiment remained cautiously optimistic, buoyed by stable monetary policies. The market is increasingly focused on the upcoming earnings releases, indicating potential shifts in trading dynamics moving forward.
Original Source: businessday.ng
