STOCK MARKET: APT Securities forecasts N100trn mark in H2’25
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…As financial services sector leads activity
By Peter Egwuatu
The Managing Director and Chief Executive Officer of APT Securities and Funds Limited, Kasimu Kurfi, has predicted that Nigerian Exchange (NGX) market capitalisation will exceed N100 trillion by the end of 2025.
Kurfi made this prediction at the Mid-Year 2025 Capital Market Review and Outlook organized by the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos.
He attributed the expected growth to foreign exchange stability, strong corporate fundamentals, and increased primary market activities.
Kurfi also predicted improved market performance in the second half of the year, with inflation expected to slow, the Central Bank of Nigeria (CBN) likely to cut the Monetary Policy Rate (MPR), and Treasury bill yields projected to fall.
Meanwhile, trading activities on the NGX, last week, showed that investors took profit as the NGX All-Share Index, ASI and market capitalisation depreciated by 0.77% to close the week under review at 144,628.20 points and N91.502 trillion respectively.
The Financial Services Industry (measured by volume) led the chart on Week on Week, WoW, with 6.916 billion shares valued at N56.716 billion traded in 84,589 deals; thus contributing 80.75% and 56.75% to the total equity.
The Oil & Gas Industry followed with 387.647 million shares worth N8.502 billion in 11,249 deals. Third place was the Agriculture Industry, with a turnover of 315.540 million shares worth N6.019 billion in 11,747 deals.
Trading in the top three equities, namely Universal Insurance Plc, Linkage Assurance Plc and AIICO Insurance Plc, (measured by volume), accounted for 2.787 billion shares worth N6.622 billion in 11,067 deals, contributing 32.54% and 6.63% to the total equity turnover volume and value respectively.
Further analysis showed that NGX other indices finished lower with the exception of NGX Insurance Index, NGX AFR Div. Yield Index and NGX Growth Index, which appreciated by 8.21%, 1.57% and 9.50% respectively.
Meanwhile, throwing light on the recent rally in the stock market, the APT Securities CEO identified key drivers to include the elimination of foreign exchange-related losses by companies.
He noted that in 2024, listed firms posted pre-tax FX losses of N507.2 billion, but in 2025, there have been zero FX losses due to exchange rate stability, significantly boosting investor confidence.
Kurfi also highlighted the impact of the Nigerian Insurance Industry Reform Act (NIIRA 25) on insurance stocks, triggering a rally in the sector. According to him, the CBN’s bank recapitalisation programme has additionally revived the primary market, attracting over N2 trillion in 2024, with similar volumes anticipated in 2025.
“Foreign capital inflows reached $5.6 billion in the first quarter of 2025, up from $3.4 billion in the same period in 2024, representing a 67.42 percent increase”, he stated.
For investors, Kurfi recommended a focus on blue-chip stocks with strong fundamentals and insurance companies, particularly those that have diversified into asset management.
He also advised portfolio diversification to include fixed-income instruments for balance, adding that the capital market remains the best hedge against inflation and naira devaluation.
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