… ASI Rises 38.65%, Recapitalisation Drive NGX Market Cap To ₦90.58trn
The Nigerian equities market sustained a bullish trajectory in the first nine months of 2025, delivering an impressive ₦27.82tn in capital gains to investors, despite persistent macroeconomic headwinds, including inflationary pressures, currency depreciation, and political uncertainties.
Data from the Nigerian Exchange Limited (NGX) showed that the benchmark All-Share Index (ASI) appreciated by 38.65 per cent year-to-date, climbing from 102,926.40 points at the beginning of the year to 142,710.48 points as of September 30, 2025.
In tandem, market capitalisation surged from ₦62.76tn to ₦90.58tn, underscoring renewed investor confidence in the domestic bourse.
Analysts attribute the strong performance to a combination of favourable government policies, monetary dynamics, and structural reforms in the financial system.
A key driver was the wave of capital-raising activities by Nigerian banks following the Central Bank of Nigeria’s (CBN) directive on new minimum capital requirements — ₦500bn for international banks and ₦200bn for national banks.
In response, lenders embarked on public offers, rights issues, private placements, and listings by introduction, moves that deepened market liquidity and heightened investor participation.
These fund-raising initiatives not only bolstered banks’ capital adequacy but also positioned the financial system to absorb future economic shocks.
Another catalyst was the monetary environment. With money market yields falling below 2024 levels, many investors rotated into equities in search of higher returns. Dividend expectations during the earnings season provided additional impetus, particularly in the banking sector.
Speaking with THE WHISTLER, Executive Vice Chairman of Hicap Securities Limited, Mr David Adonri, said corporate results played a critical role in sustaining positive sentiment.
“Most companies, especially banks, released their half-year results during the quarter. The market normally sustains positive momentum during earnings season,” he noted.
Adonri added that the market has remained forward-looking despite political uncertainties. “The equities market is defying current political uncertainties because investors are futuristic. The prospect for a favourable yield environment is bright,” he said.
Similarly, Managing Director of Arthur Steven Asset Management Limited, Mr. Olatunde Amolegbe, pointed to a fundamental shift in market dynamics, with local investors now dominating market activity.
According to him, the increasing participation of domestic retail and institutional investors has reduced volatility and strengthened resilience.
“This shift has naturally reduced volatility in stock prices, as local investors tend to have more faith in the market,” Amolegbe explained. “That’s why you see the NGX ASI continuing to rise despite all the uncertainties in the environment.”
He further observed that optimism around government policy reforms aimed at attracting foreign direct investment has reinforced investor confidence. “Some of these policies will also lead to a short-term increase in inflation levels, and typically, stock prices tend to rise along with inflation,” Amolegbe said.
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