The Nigerian stock market ended February 2025 on a positive trajectory, with the All-Share Index (ASI) rising by 3,325.27 points to close at 107,821.39 points, marking a 3.18% increase from the month’s opening figure of 104,496.12 points. This growth was fueled by strong performances in mid-cap stocks and significant contributions from heavyweight Dangote Cement, despite a decline in trading volume.
Market Performance Overview
The month began on a strong note, with the ASI surging above the 108,000-point mark during the second week. However, the index experienced modest gains in the third week and a slight decline in the fourth week, ultimately closing at 107,821 points. Market capitalization also saw a notable increase, rising from N64.7 trillion at the beginning of February to N67.1 trillion by the end of the month.
Trading volume, however, decreased by 27.30%, dropping from 12.6 billion shares traded in January to 9.2 billion shares in February. This decline in activity did not dampen the overall positive sentiment, as key indices and select stocks recorded significant gains.
Sectoral Performance
The NGX Premium Index led the gains, rising by 7.43%, driven by a more than 20% increase in Dangote Cement’s share price, alongside smaller gains in Lafarge Africa and MTN Nigeria. The NGX 30 Index also posted a 1.55% increase during the month.
Sectoral indices showed mixed performances:
– The NGX Industrial Goods Index surged by 10%, supported by strong performances from Dangote Cement and Beta Glass.
– The NGX Consumer Goods Index grew by 1.70%.
– Conversely, the NGX Oil & Gas Index declined by 4%, largely due to a 15.13% drop in Oando’s share price.
– The Banking and Insurance sectors also saw declines of 2.07% and 0.87%, respectively.
Top Gainers and Losers
PZ Cussons emerged as the top gainer for the month, with its share price rising by 53.91%. Other notable gainers included UPDC (53.48%), Eterna (52.17%), Honeywell Flour Mills (43.00%), and Beta Glass (39.65%).
On the flip side, Union Dicon Salt led the losers’ table with a 28% decline, followed by Learn Africa (28%) and Euniseell Interlinked (27%). Other stocks that saw declines included University Press, Darrcomm, and Oando.
Corporate Actions and Developments
Several corporate actions took place in February, including:
– Presco and Fidson Healthcare released their Q4 financial statements for the period ending December 31, 2025.
– VFD Group published its Q4 financial results.
– Dangote Cement announced plans for a $400 million expansion of its Ethiopia cement plant.
– Transcorp Hotels released its audited financial results for the full year of 2024.
Market Outlook
The Nigerian stock market is currently experiencing bullish momentum, with the All-Share Index eyeing the 110,000-point threshold. Analysts suggest that positive reactions to favorable earnings reports released in late January and early February could drive the index past this milestone, provided the market is not perceived as overbought.
The strong performance of Dangote Cement and mid-cap stocks, coupled with improved market capitalization, underscores the resilience of the Nigerian equity market. However, investors remain cautious as sectoral declines and reduced trading volumes highlight underlying challenges in certain segments of the market.
As the market moves into March, stakeholders will be closely monitoring corporate earnings, regulatory developments, and global economic trends to gauge the sustainability of the current bullish trend.
