Nigeria’s stock market added approximately ₦2.5 billion in value in February, defying mixed trading sessions marked by bargain hunting and profit-taking.
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) rose by 3.18 per cent, closing at 107,821.39 points, while market capitalisation increased to ₦67.193 trillion from ₦64.708 trillion at the start of the month.
Despite losses in oil & gas and banking stocks, the market’s growth was driven by industrial, consumer goods, and insurance equities.
A significant boost came from Zenith Bank Plc’s hybrid offer, which introduced over 9.67 billion ordinary shares through a rights issue at ₦36 per share and a public offer at ₦36.50 per share.
Market Resilience Amid Economic Changes
The market’s year-to-date (YtD) return stood at +4.76 per cent by month-end, reflecting investors’ confidence in stocks with strong fundamentals.
Meanwhile, the National Bureau of Statistics (NBS) reported a decline in headline inflation to 24.48 per cent in January, down from 34.80 per cent in December 2024 following a rebasing exercise.
At its 299th monetary policy meeting, the Monetary Policy Committee (MPC) maintained the Monetary Policy Rate (MPR) at 27.50 per cent, with the Cash Reserve Ratio (CRR) at 50 per cent for deposit money banks and 16 per cent for merchant banks, alongside a liquidity ratio of 30 per cent.
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Outlook: Cautious Optimism
Lagos-based Meristem Research projects positive sentiment will persist, particularly with earnings season underway.
They expect buying interest to outpace selling pressure as investors position for full-year financial reports and dividend declarations.
However, the market dipped by 0.62 per cent in the final trading week, driven by sell-offs in banking, insurance, and oil & gas stocks.
Analysts anticipate renewed buying momentum in the coming months.
