BREAKING: Equities market gains N2.7trn in first four trading days of 2024

The equities market of the Nigerian Exchange Limited (NGX) gained N2.7trillion in first four-day trading activities of 2024 to sustained its positive momentum from 2023 rally.

Specifically, the overall equities market capitalisation closed on Friday at N43.593 trillion, gaining N2.7trillion or 6.54per cent from N40.917 trillion it opened for trading in 2024.

Consequently, the NGX All-Share Index increased to historic 79,664.66 basis points, representing a growth of 4,890.89 basis points or 6.54per cent from 74,773.77 basis points the stock market closed for trading in 2023.

The breakdown revealed that on Tuesday, 2024,  the overall market capitalisation appreciated by N667 billion, while the NGX All-Share Index gained 1,217.11 basis points or 1.63 per cent to close at 75,990.88 basis points.

During Wednesday trading activities that equities market sustained the uptrend performance with a gain of N847 billion, as the NGX All Share Index gained by 1,546.69 basis points or 2.04 per cent to close at 77,537.57 basis points.

Closing on Thursday, the equities market gained N264.3billion to close at N42.694trillion in market capitalisation, while the NGX All Share crossed the 78,000 basis points to 78,020.54 basis points, gaining 482.97basis points or 0.62per cent from  77,537.57 basis points.

On Friday, the equities market appreciated by N899.69billion to close at N43.594trillion from N42.694trillion it opened for trading, while the NGX All-Share Index stood at 79,664.66basis points from 78,020.54 basis points it opened for trading.  

The equities market has been on an upward trajectory since the entry of the new administration led by President Bola Tinubu, due to proactiveness in implementing necessary reforms such as the removal of fuel subsidy and the liberalization of the foreign exchange market.

While investor sentiment suggests that the Nigerian equities market’s recent peak is not a mere flash in the pan, experts stress the importance of ongoing stability, security, and continued economic reforms. The historic high of the Nigerian equities market has created ripples in the global financial arena, with investors keenly observing the nation’s economic trajectory.

Although it does not guarantee prosperity, it does signify global recognition of Nigeria’s vast potential. The hope is that this extraordinary accomplishment will lead to improved living standards for Nigerians and bolstered economic stability for the nation.

Capital analysts had predicted sustained positive momentum this year over early passage of the 2024 budget, and Federal Government policy reforms.

Commenting, the CEO, Wyoming Capital and Partners, Mr. Tajudeen Olayinka, explained that the stock market has witnessed positive momentum in 2024 and  it can draw that from 2024 budget proposal of President Tinubu, where total reliance has been placed on the use of private capital in funding some important developmental projects across the country.

According to him, “In a way, we are going to see more public companies get listed on the stock exchange for the purpose of raising new capital, while the existing listed companies will not be left behind in this development.

“So, I see a very bullish and active primary market in 2024, even though, there could be occasional moderation in price movement across the board, as investors take profit and engage in portfolio rebalancing.

“The fact that private sector will take the lead in navigating the economy out of its prolonged state of disequilibrium, we will see a better capital market in 2024.”