The Nigerian equity market defied the global trend as its market capitalisation appreciated by 46.6 percent or N13tn last year, the World Federation of Exchanges has revealed.
This is as the global equity market capitalisation, also increased by 13 percent or over $13tn in 2023.
It indicated that despite the growth of global market capitalisation, trading value, and volumes declined 10.6 percent and 3.4 percent, respectively, in 2023, with all regions recording their lowest annual trading value in the last three years.
According to the WFE report, the average trade size was at its lowest level in the last three years (at $2,776.45/trade).
The report noted,
“The non-IPO listings in the Americas and EMEA region were at their minimum level in the last three years, while the APAC region recorded its maximum. Meanwhile, the capital raised through already listed companies registered its minimum level in each region. The number of IPOs in every region was at its lowest in the last three years, with markets welcoming only 1,217 IPOs in 2023.
“The capital raised through IPOs fell sharply compared to 2022 (-59.3 percent). While the APAC and EMEA regions declined by -43.3 percent and -86.1 percent, respectively, the Americas experienced a significant increase (71.3 percent).
“The average size of an IPO followed the same trend. However, in the APAC and EMEA regions, it recorded its lowest level in the last three years, amounting to $86.11m/IPO and $88.11m/IPO, respectively, in the Americas it almost doubled, and reaching $126.41m/IPO. Despite this decline, global markets hosted five unicorns in the second half of the year (in addition to the three unicorns listed in the first half of the year).”
However, the number of exchange-traded derivatives contracts, including both options and futures, reached its highest level in the last three years, amounting to 104.06 billion for options and 30.33 billion for futures (134.40 billion derivatives contracts traded), representing a 58.9 percent increase compared to 2022.
