On the back of 27.84 per cent Year-till-Date (YtD) return, the Nigerian stock market joined six others as the best performing exchanges in Africa helped by the federal government reforms.

As of July 18, 2025, the Nigerian Exchange Limited All-Share Index (NGX ASI) increased to its highest peak of about 131,585.66 basis points, about 27.84 per cent YtD growth from 102,926.40 basis points it opened for trading this year.

Nigeria’s reforms in the foreign exchange market, fuel subsidy removal, the Central Bank of Nigeria (CBN) banking sector recapitalisaton directive, foreign investors taking advantage of undervalued stocks among others have played a critical role in the Nigeria’s stock market performance this year.

A data seen by THISDAY showed that Malawi Stock Exchange at 229.85 per cent YtD is the best performing Exchange in Africa, followed by Lusaka Securities Exchange and Ghana Stock Exchange with 154.45per cent and per cent, YtD, respectively.

According to the data, the Stock Exchange of Mauritius and Zimbabwe Stock Exchange are the only two worst performing Exchanges in Africa.

As of July 18, 2025, the Stock Exchange of Mauritius returns stood at negative 1.81 per cent YtD, while that of Zimbabwe Stock Exchange depreciated by 8.95 per cent in its YtDreturns.

The Malawi Stock Exchange (MSE) strong performance this year has been largely driven by soaring banking sector earnings and share prices, heightened retail and institutional investor activity amid limited supply, and a cautiously improving macroeconomic environment building investor confidence.

MSE’s in the last two-year also led others in returns, followed by Lusaka Securities Exchange, Ghana Stock Exchange and NGX ranked forth.

Malawi’s mild economic recovery and stabilisation of foreign exchange reserves are gradually easing inflation and liquidity pressures—though inflation remains high at 28 Year-on-Year (YoY) and growth expectations have been trimmed for 2025 at 3.2 per cent.

Analysts in Malawi cited improved capitalmarkets financial literacy and investor education as contributing to heightened participation and confidence.

The momentum on Lusaka Securities Exchange is built on improved regulation, product innovation, and the democratization of investing—especially via mobile platforms.

While liquidity remains relatively limited (with only 22–25 listed companies), the exchange is deepening through SME and bond listings, institutional interest, and gradually rising foreign participation.

Earnings transparency, continued consumer and energy sector listings, and Zambia’s commodity-linked growth outlook all suggest sustained optimism for the rest of 2025 and beyond.

However, the Nigerian stock market so far in 2025 has seen a mix of economic reforms, robust corporate earnings, enhanced investor engagement and renewed confidence in the capital market fostered by progressive government policies.

Capital market operators said a major catalyst for the market’s performance has been the series of economic reforms introduced by the Nigerian government, particularly the removal of the fuel subsidy, the unification of foreign exchange windows, and the transition to a floating naira regime.

Although initially met with resistance and uncertainty, these reforms have begun to yield positive outcomes, especially in improving policy clarity and attracting foreign portfolio investors who had been previously discouraged by Nigeria’s complex and inconsistent foreign exchange landscape.

The increased transparency in foreign exchange management has helped reduce volatility and encouraged the return of offshore capital into the domestic market.

Another critical factor underpinning this rally is the strong earnings posted by many listed companies. The banking and industrial goods sectors have delivered solid financial results, reinforced investor confidence and attracted income-focused investors with their generous dividend declarations.

Despite operating in a volatile macro-economic environment marked by currency fluctuations and inflationary pressures, several companies demonstrated remarkable resilience, returning to profitability and exceeding market expectations.

Investor activity has also intensified, particularly in the financial services sector, which accounted for more than 66 per cent of total trading volumes during the review period.

Speaking on the market performance, Vice President, Highcap Securities Limited, Mr. David Adnori stated that investors are trading based on sentiment.

He stated President Bola Tinubu reforms further energised the stock market since market participants have hope in his ability to rejig the economy and implement economy-friendly policies.

Adnori, however, was optimistic that the stock may maintain its positive momentum in 2025, on the backdrop of banking sector recapitalisation and expected 2025corporate earnings by most especially the banks listed on the Exchange.

On his part, Investment Banker & Stockbroker, Mr. Tajudeen Olayinka stated that the 27.84 per cent  NGX ASI’s is an indication of huge liquid funds in the hands of institutional investors who currently dominate activities in the stock market.

“It also holds the fact that the future is brighter for some of the listed companies, hence, investors are positioning their portfolios for that brighter future. This is also the reason the market remains resilient in spite of a high interest rate regime,” he said.

On the stock market projection for 2025, he said, “the second half of the year may be a bit challenging for a rapid price movement, given a catalogue of offers from banks raising fresh capital to meet the new capital requirements for banks. It is going to be more of a balanced market, with investors exercising their rights to additional shares and/or taking new shares to maintain a balance.”

Culled from ThisDay