Kelechukwu Mgboji The Nigerian equities market has maintained a formidable bullish run since December 2024, propelling the All-Share Index (ASI) past multiple psychological barriers.
Starting 2025 at 102,928.57, the index has maintained a bullish run closing on a positive note almost every trading week, underscoring sustained investor confidence.
On Friday, February 14, the benchmark All Share Index hit 108,053.95 points while the market capitalization closed at N67.42 trillion, leaving yearto-date return at +4.98 per cent and +7.42 per cent.
The difference in percentage returns between the two market indicators is due to fresh listing of some capital raised by GTCO, and others. Mr. Olatunde Amolegbe, the Managing Director and Chief Executive Officer of Arthur Steven Asset Management, foresees sustained rally in the equities market driven by rapid banking sector recapitalization, heightened oil production, and strong investor participation in recent public offerings.
“I anticipate a stable market or further price increases in Q2,” he noted. “The banking recapitalisation process is progressing swiftly, as evidenced by the recent release of allotment results.
Public offerings have attracted strong investor engagement,” he explained, adding that forthcoming corporate announcements could further boost sentiment.
The Multi-Assets Portfolio Manager at FBNQuest, Mr. Chris Njoku, suggested that potential new listings, including the Nigerian National Petroleum Corporation (NNPC) and Dangote Refinery, could bolster the bullish momentum.
Amid this market rally, analysts remain cautiously optimistic about the second quarter of 2025, citing a potential influx of investor interest driven by declining yields in fixed-income securities.
Samuel Oyekanmi, Research Lead at Norrenberger, highlighted this trend, stating: “As yields on debt securities decline, we may see more investors shifting their focus to equities.”
Oyekanmi referenced data from the Debt Management Office (DMO), which showed Nigeria’s Eurobond yield dropping to 9.13 per cent on February 4, 2025—the lowest in nearly 39 days.
“Similarly, Treasury bill yields have also edged lower, with Nigeria’s one-year Trea – sury bill auction yield decreasing from 29.65 per cent to 29.21 per cent, marking the second consecutive decline.
