The bullish run in the Nigerian Equities Market continued on Wednesday, January 24, as investors poured into prominent stocks like Dangote Cement and BUA Cement, propelling the benchmark NGX All-Share Index (NGXASI) to an unprecedented level. The index soared from 98,616.97 points to an impressive 101,571.11 points, marking a historic high and reflecting the prevailing positive market sentiment.
This surge marks the tenth consecutive trading day of upward momentum, driven by heightened investment activities. Key stocks, including DANGCEM (+6.49%), GTCO (+0.47%), BUACEMENT (+9.98%), TRANSCORP (+4.51%), and BUAFOODS (+5.59%), contributed significantly to the positive market performance.
The Nigerian equities market gained a staggering N1.61 trillion in market capitalization during the day, rising from N53.967 trillion to N55.583 trillion. This follows the recent milestone where the Nigerian equity market outperformed Argentina, becoming the top-performing bourse globally.
The surge in market activities is attributed to increased buying among investors, driven by favorable reforms initiated by President Bola Tinubu. The NGX All-Share Index climbed to an all-time high of 101,571.1 points, indicating a 3% increase in less than a week.
In a positive breadth, 35 stocks recorded gains, 30 witnessed declines, and 52 maintained an unchanged status across 12,080 deals. This impressive performance contributes to the overall return on the Nigerian equity market, standing at an impressive 93.1% over the past 52 weeks.
The upward trend in the stock market aligns with the central bank’s commitment to supporting the Nigerian Government’s ambitious goal of achieving a $1 trillion economy by 2030. Heightened interest in bank stocks, driven by increased capital levels mandated by the central bank, has significantly influenced the robust performance of the Nigerian stock market in recent weeks.
Sector performance exhibited a mixed trend, with the Industrial Index leading with a gain of 7.64%, followed by the Consumer Goods and Oil/Gas indices, recording gains of 4.07% and 0.09%, respectively. However, the Insurance and Banking indices faced declines, posting losses of 1.52% and 0.61%, respectively.
Dangote Cement played a pivotal role in the market’s positive performance, achieving a historic milestone by surpassing the N10 trillion market capitalization threshold. The top gainers of the day included WAPIC, BUACEMENT, JAPAULGOLD, UPL, and TRIPPLEG, while NEM Insurance led the decliners.
Reacting to the milestone, Chinyere Nnamdi, a stockbroker at the NGX, emphasized that Nigeria’s stock market’s remarkable achievement signifies positive market dynamics, economic vitality, and strong investor confidence. The surge reflects positive economic indicators, corporate performances, and global market trends, showcasing Nigeria’s economic growth and instilling confidence in the investment landscape.
In related news, approximately 24 companies listed on the NGX generated a collective revenue of N13.94 trillion during the first nine months of 2023, marking a substantial 53.1% surge from the previous year. This underscores the resilience and attractiveness of Nigeria’s thriving stock market.
