The Nigerian Change Restricted (NGX) completed the primary week of 2024 on a constructive observe, buoyed by sustained investor confidence in listed firms.
This momentum has instilled optimism for a probably bullish market in 2024, bringing the All-Share index up by 6.54% to shut at 79,664.66 factors.
Equally, all different indices completed greater besides NGX Development and NGX Sovereign Bond Indices which depreciated by 6.38% and 1.21% respectively, whereas the NGX ASeM index closed flat.
Market analysts have mentioned that the inventory market has been fairly eventful and bullish in 2023, and might fairly undertaking additional enchancment in 2024, as extra firms strategy the marketplace for itemizing and public choices.
Market efficiency
Obtainable statistics to the Nairametrics confirmed that the All-Share Index, which is the broad index that measures the efficiency of Nigerian shares, opened the buying and selling week at 74.773.77 index factors at first of buying and selling on January 2, 2024, and closed at 79.664.66 factors on the finish the week on January fifth, gaining 4,890.89 foundation factors or 6.54%.
Additional evaluation revealed that actions on the Nigerian Change Restricted (NGX) which opened the buying and selling week at N40.917 trillion in market capitalization at first of buying and selling, closed the week at N43.593 trillion, therefore has earned a week-to-date acquire of about N2.676 trillion.
Over the week, sturdy performances in DANGCEM (+1.59% w/w), AIRTELAFRI (+5.99% w/w), and MTNN (+7.95% w/w) drove the market’s constructive efficiency, outweighing losses in STANBIC (-5.96% w/w), GUINNESS (-7.58% w/w), and CADBURY (-11.05% w/w). Consequently, the year-to-date (YTD) return rose to six.54%.
A complete turnover of three.320 billion shares value N41.755 billion in 46,994 offers was traded through the week by buyers on the ground of the Change, in distinction to a complete of 1.186 billion shares valued at N31.425 billion that exchanged fingers final week in 23,969 offers.
The Monetary Providers Business (measured by quantity) led the exercise chart with 2.399 billion shares valued at N26.054 billion traded in 22,833 offers; thus contributing 72.25% and 62.40% to the entire fairness turnover quantity and worth respectively.
The Conglomerates Business adopted with 213.139 million shares value N2.434 billion in 2,284 offers. The third place was the Oil and Gasoline Business, with a turnover of 163.313 million shares value N2.054 billion in 3,443 offers.
Buying and selling within the prime three equities specifically Constancy Financial institution Plc, FCMB Group Plc, and Sterling Monetary Holdings Firm Plc (measured by quantity) accounted for 767.964 million shares value N7.289 billion in 4,589 offers, contributing 23.13% and 17.46% to the entire fairness turnover quantity and worth respectively
Market analysts’ market outlook
Mike Ezeh, the Chief Govt Officer of Crane Securities Restricted, mentioned, the emergence of President Bola Tinubu additional energized the market since market individuals have hope in his potential to rejig the economic system and implement economy-friendly insurance policies.
- “The elections got here and have been hitch-free in opposition to all unification of the a number of trade charges, overview of financial and monetary insurance policies, a shake-up of main modifications carried out on the apex financial institution and its overflow all the way down to the deposit cash banks throughout the nation introduced stability to the market.
- “The commissioning of the primary indigenous personal refinery which has a cyclical impact on each upstream and downstream operations of petroleum firms quoted out there propelled the interaction out there by some high-net-worth buyers on many quoted firms leading to excessive turnover in buying and selling volumes of these firms resulting in the numerous improve in market capitalization inside the interval.”
He urged the brand new authorities in 2024 to proceed to implement insurance policies that would offer an enabling surroundings for companies to thrive, saying this could assist enhance the nation’s Overseas Direct Funding (FDI) and appeal to issuers to the capital market.
Commenting, Tajudeen Olayinka, Analyst, and CEO, of Wyoming Capital and Companions mentioned:
- “The inventory market has been fairly eventful and bullish in 2023, and might fairly undertaking additional enchancment in 2024, as extra firms strategy the marketplace for itemizing and public choices.
- The truth that authorities will rely largely on using personal capital in addressing infrastructure deficit, means that we’ll see a greater capital market.”
In his projection for 2024, Victor Chiazor, Analyst and Head of Analysis at FSL Securities Restricted mentioned:
- “Authorities insurance policies round international trade and subsidy removing harm the economic system.
- In 2024, we anticipate some stage of normalization round current coverage statements by the federal government therefore, the equities market is anticipated to be pushed by firm efficiency in addition to new pro-market insurance policies.”
