Equities trading on the Nigerian Exchange Limited (NGX) concluded the first month of 2024 (January) with notable positivity, propelled by a notable surge of 35.5% and 26,380.68 points affirming investor confidence directed towards listed corporations.
This exceptional performance stands as a milestone in NGX’s history, defying prevailing economic challenges such as elevated inflation, a depreciating exchange rate, and persistent security concerns.
The prevailing optimism manifested in discernible shifts in purchasing behaviour, culminating in the All-Share Index reaching a noteworthy close at 101,154.46 index points by the end of January.
This figure represents a substantial 35.3% escalation from the previous year’s conclusion.
Moreover, the year-to-date (YTD) return of the NGX All-Share Index underscores its resilience, standing at an impressive 35.3%.
Despite the backdrop of escalating inflation, prospective interest rate adjustments, and volatile exchange rates, investor confidence has displayed remarkable steadfastness.
This unwavering assurance has, in turn, spurred heightened market activity and intensified buying engagements.
A keen look at the timeline, reveal that Equity trading on the Nigerian Exchange Limited (NGX) had closed trading on Wednesday, January 24th, 2024, in the green territory as the NGX All-Share Index appreciated by 3% to cross 100,000 index points hitting 101,571.11 points.
The development was unprecedented in the history of the Exchange being the first time the Exchange achieved the feat.
According to the report, before crossing the 100,000 points, NGX had secured its position as the world’s best-performing stock market in the first three weeks of 2024, capping off the trading day on January 19, 2024, at an impressive 94,538.12 points.
With a remarkable year-to-date return of 26.43%, the NGX has outshone its global counterparts.
The market positive sentiment among investors is being attributed to several factors, including favourable policies introduced by President Bola Tinubu’s administration such as the removal of fuel subsidies, streamlining of exchange rates, the floating of the naira and investors strategically positioned themselves and taking advantage of the recent record earnings posted by quoted firms.
However, for the first time in 20 days massive sell offs triggered at the NGX on 30th of January and extended to 31st following profit takings.
For the two days, the NGX closed in the bearish zone as the All-Share Index declined by cumulatively by 3.36% to close at 101,154.46 points, a decline of 3,520 from 104,674.67 points it closed on Monday 29th.
Consequently, available statistics showed that the All-Share Index, which is the broad index that measures the performance of Nigerian stocks, opened the trading month at 74,773.77 index points at the beginning of trading on January 2, 2024, and closed at 101,154.46 points at the end the month on January 31, gaining 26,380.68 basis points or 35.3%.
Further analysis revealed that activities on the Nigerian Exchange Limited (NGX) which opened the trading month at N40.917 trillion in market capitalization at the beginning of trading, closed the month at N55.357 trillion, hence has earned a month-to-date gain of about N14.440 trillion.
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