Global Markets
The global equities market commenced 2025 on a bullish trajectory, with major indices closing January in positive territory. The MSCI World Index advanced by 3.5% MoM, while the MSCI Frontier and MSCI Emerging Markets indices posted gains of 3.0% MoM and 1.7% MoM, respectively.
The U.S. equities market rallied early in the month, buoyed by signs of economic resilience. December 2024 saw the addition of 256,000 jobs, alongside an annualized GDP growth rate of 2.3% in Q4 2024. Investor sentiment was further bolstered by President Donald Trump's return to the White House and the reintroduction of his "America First" policy. Market participants reacted positively to anticipated pro-growth measures, including deregulation and tax relief, which spurred broad-based gains across sectors. However, gains were partially tempered towards the month-end as the technology-heavy U.S. market faced significant headwinds. The launch of China’s low-cost AI platform, DeepSeek, triggered a sharp selloff in semiconductor giant Nvidia, resulting in an unprecedented $600 billion loss — the largest single-day market capitalisation decline in U.S. market history. Despite this setback, key indices recorded net gains for January.
Overall, the Dow Jones Industrial Average registered a 4.7% MoM increase, while the S&P 500 and NASDAQ Composite advanced by 2.7% MoM and 2.2% MoM, respectively.
Similarly, the UK and European markets closed higher in January, with the FTSE 100 and STOXX 600 indices posting gains of 6.1% and 6.3%, respectively. In the eurozone, market performance was driven by a strategic rotation away from U.S. equities, where concerns over high valuations and declining earnings in major technology stocks prompted investors to seek opportunities in European assets. Additionally, the region's Purchasing Managers' Index (PMI) edged into expansionary territory at 50.2 in January, reinforcing optimism about potential economic recovery. Meanwhile, the UK market benefited from a weaker pound against the U.S. dollar, which favored large-cap firms—particularly oil companies—earning a significant portion of their revenues in dollars; while elevated interest rates relative to historical standards at 4.75% boosted banking stocks on the back of improved net interest margins.
Elsewhere, in Asia, market performance was mixed, with Japan’s TOPIX inching up by 0.1% MoM, while China’s Shanghai Composite contracted by 3.0% MoM. The decline in Chinese equities was driven by weak economic data released during the month. Specifically, factory activity in China unexpectedly contracted in January, and growth in the services sector slowed sharply, driving bearish sentiments in the market. Meanwhile, Japan’s modest gains were tempered by the upward pressure on the yen, which proved to be a headwind for Japan’s export- oriented equity market.
Nigerian Equities
ASI hits 9-month high in January
The Nigerian equities market also proved resilient in January. Specifically, the All-Share Index (ASI) advanced by 1.5% MoM to reach 104,496.12 points— its highest close in 9 months— while market capitalization increased by N1.95 trillion to N64.71 trillion. Key market movers for the month included MTNN (+25.0%), PRESCO (+23.2%), ZENITHBANK (+11.2%), and UBA (+10.9%). The telecoms giant, MTNN rallied following the NCC's approval of a 50.0% tariff hike for Mobile Network Operators (MNOs), effective January 20, 2025— the first tariff adjustment since 2013. The NCC deemed this increase necessary to support infrastructure investments, drive innovation, and enhance service quality, network reliability, and coverage for consumers. Overall, SCOA (+97.6%) emerged as the best performing ticker in the month, while SUNUASSUR (-46.51%) led the laggards. Sector-wise, the Banking index outperformed, posting a return of 9.8%, following renewed interest in the tier-1 banks, including ZENITHBANK (+11.2%), UBA (+10.9%), ACCESSCORP (+9.0%), GTCO (+7.1%), and FBNH (+6.8%). Conversely, the Industrial Goods index (-8.5%) suffered the steepest decline, weighed down by DANGCEM (-17.7%). Meanwhile, the NGX launched the Equity-Based Commodity Index, designed to track companies in energy, agriculture, mining, metals, and natural resources. The index debuted at 1,000 points with constituents including GEREGU, OKOMU, PRESCO, SEPLAT, ARADEL, TRANSPOWER, and MULTIVERSE.
On corporate disclosures, STANBIC opened its rights issue, offering 2,944,772,083 ordinary shares at N50.50 per share on a 5-for-22 basis (as of October 29, 2024), aiming to raise N148.7 billion. Elsewhere, ZENITHBANK announced a 160.5% oversubscription on its hybrid offer, securing a total of N350.46 billion.
