The Managing Director and Chief Executive Officer of APT Securities and Funds Limited, Kasimu Kurfi, foresees the Nigerian Exchange (NGX) market capitalisation to exceed ₦100 trillion by the end of 2025.
Kurfi made this prediction at the Mid-Year 2025 Capital Market Review and Outlook organised 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.
The APT Securities CEO identified key drivers of the 2025 market rally, including the elimination of foreign exchange-related losses by companies.
He noted that in 2024, listed firms posted pre-tax FX losses of ₦507.2 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 recapitalization program has additionally revived the primary market, attracting over ₦2 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.
“The NGX turnover reached ₦4.19 trillion for the first half of 2025, compared to ₦2.60 trillion in the same period in 2024. Total market capitalization rose to ₦126.73 trillion from ₦112.6 trillion in December 2024.” 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.
Kurfi noted that sectoral performance has been robust, with about half of the NGX’s 21 indices outperforming the All-Share Index (ASI).
“The Nigerian Consumer Goods Index has more than doubled the market’s gains with an 81.11 percent rise, followed by the Insurance Index at74.18 percent.”
Comment here