Nigeria’s stocks value rises by N2.5bn in February

The value of Nigeria’s listed equities rose by about N2.5billion in the month of February despite mixed trading sessions of bargain hunting and profit taking activities.

The market rose by 3.18 percent in February, thanks to investors in industrial, consumer goods, and insurance stocks despite record decline in oil & gas, and banking stocks.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation which started the review month at 104,496.12 points and N64.708trillion respectively rose to 107,821.39 points and N67.193trillion at the close of trading on February 28.

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In addition to improved buy-side activities in the review month, the NGX listed Zenith Bank Plc’s hybrid offer arising from the rights issue of 5,232,748,964 ordinary shares at N36 per share and offer for subscription of 4,440,587,250 arising from public offer of 2,767,251,036 ordinary shares at N36.50 per share.

Despite record market volatility in the review month, the Nigerian Exchange Limited (NGX)-All Share Index (ASI) closed February in the green zone as investors continued to position in stocks with strong fundamentals, which helped maintain the Lagos Bourse upward momentum. The market’s year-to-date (YtD) return stood higher at +4.76percent.

In the review month, the National Bureau of Statistics (NBS) released Nigeria’s inflation report which showed headline inflation rate dropped to 24.48 percent in January after rebasing as against 34.80 percent in December 2024.

Also, after its 299th monetary policy meeting in February, the Monetary Policy Committee (MPC) retained the Monetary Policy Rate (MPR) at 27.50 percent and retained the asymmetric corridor around the MPR at +500 basis points (bps)/-100bps.

The MPC also retained the Cash Reserve Ratio (CRR) for deposit money banks at 50 percent; retained the CRR for merchant banks at 16 percent; and retained the liquidity ratio at 30 percent.

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“We project that the recent hold stance in monetary policy could provide some succor, boosting positive sentiments towards equity assets. Also, with the earnings season underway, we anticipate that the buying interest would outpace selling pressures as investors position themselves ahead of companies full-year releases and dividend declaration,” said Lagos-based Meristem research analysts in their February 24 note.
Meanwhile, in the last trading week to Friday February 28, Nigeria’s equities market decreased by 0.62 percent as investors sold mostly banking, insurance, and oil & gas stocks. The market closed the week in red as dip buyers failed to step in.