- Equities regain 100,000 mark
The Nigerian stock market closed at the weekend with a net capital gain of N1.1 trillion.
It was the market’s biggest post-budget rally as investors appeared increasingly positive about the outlook for the economy.
The benchmark index for the Nigerian equities market regained its psychological 100,000 points with near- market-wide positive sentiments in a week dominated by presentation of the N49.7 trillion 2025 budget proposal.
The naira appreciated by four basis points to N1,547.64/$.
On Wednesday, President Bola Ahmed Tinubu presented the 2025 Appropriation Bill to the joint session of the National Assembly.
With more than two advancers for every decliner, the benchmark index for the Nigerian equities market closed the week with average gain of 1.76 per cent. This implies that investors recorded net gains of N1.06 trillion.
The All Share Index (ASI) and aggregate market capitalisation of quoted companies at the Nigerian Exchange (NGX) recorded perfect concurrent trends, which technically implies that the rally at the stock market was entirely driven by positive investors’ sentiment.
The performance of the Nigerian stock market counteracted global market situation for the week, with most global indices closing in the red.
Experts said the Nigerian market was responding to domestic stimulus, aided by a stable fiscal agenda and discipline.
The ASI rose from the week’s opening index of 99,378.06 points to close at 101,129.09 points, its highest index points in recent period. Aggregate market value of all quoted companies at the NGX also increased from the week’s opening value of N60.242 trillion to close weekend at N61.303 trillion.
With these, the average year-to-date return for Nigerian equities rallied to 35.25 per cent, firmly putting Nigeria’s on the course to closing as one of the three best-performing stock markets in the world.
The positive market performance highlighted the optimism among most finance and economic experts who mostly described the 2025 budget proposal as a major improvement.
However, most analysts believed disciplined implementation will make a decisive difference. President Tinubu, in turn, has promised focused implementation of the budget, warning that there won’t be space for excuses.
Economic and finance experts described the 2025 budget proposal as a laudable fiscal strategy capable of driving the country’s growth, if well implemented.
Experts said the budget, though ambitious, is realistic and impactful.
Those who spoke included Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf; Managing Director, Arthur Steven Asset Management, Mr Olatunde Amolegbe; Managing Director, APT Securities & Funds, Mallam Kasimu Kurfi and Managing Director, HighCap Securities, Mr David Adonri among others.Kurfi, a senior investment banker and major operator at the capital market, said the highlights and parameters of the 2025 budget proposal were welcome development.
According to him, the revenue target, the oil production projection, forex forecast and other highlights underscore a generally positive outlook.
Yusuf said the overall budget message was very good and inspiring, given the current challenges facing the country.
According to him, the budget priorities are laudable and appropriate for the prevailing economic and social conditions.
He outlined that giving priorities to defence and security, infrastructure, health and education reflects a commendable commitment to fix the critical challenges impeding the performance of the economy.
Amolegbe said the ambitious nature of the budget is in order as Nigeria requires an aggressively ambitious budget to tackle its huge infrastructural challenges.
He noted that while some may look at size of borrowing, continuing improvement in debt to GDP and debt to revenue underlined expansionary capacity of the economy under the current reforms.
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Adonri said the president aptly captured the anxieties, worries and expectations of Nigerians in his budget speech.
“It demonstrates that he understands the contending issues and enormity of the tasks ahead. I am particularly comforted by his reference to the twin evils of corruption and insecurity as Nigeria’s greatest existential threats,” Adonri said.
He, however, noted that the huge deficit may continue to fuel inflation while the evidence of debt trap is now apparent as government requires new debt to service existing debt.
“I don’t agree with the plan for revitalizing healthcare as it seems to replicate the failed strategy of the past which centers on the public sector rather than the private sector in an increasingly deregulated socioeconomic environment.
“While the overall budget strategy is good on paper, implementation is a critical challenge that has always bedevilled translation of the goals from dream to reality in Nigeria. Hope this will be different,” Adonri said.