Stock Market Kicks Off 2024 with a Bang, Investors Rake in Profits
The Nigerian Exchange Limited (NGX) commenced the first trading session of 2024 on a positive note, with investors reaping substantial gains as they re-entered the market. This surge was primarily driven by heightened interest in Airtel Africa Plc and 49 other stocks, resulting in a considerable boost to the overall market capitalisation of N665.98 billion.
At the conclusion of yesterday’s trading, the NGX All-Share Index reached a new milestone of 75,990.88 basis points, representing a significant increase of 1,217.11 basis points or 1.63%. This commendable performance follows a highly prosperous year in 2023, where investors witnessed the overall market capitalisation soar by N13 trillion.
Analysts are sanguine about the ongoing positive momentum in 2024, particularly with the early approval of the 2024 budget and continuous policy reforms by the Federal Government. One industry authority, Mr. Tajudeen Olayinka, CEO of Wyoming Capital and Partners, underscored the constructive impact of the 2024 budget, which focuses on leveraging private capital for crucial development projects throughout the country. He anticipates a flourishing primary market in 2024, with an influx of public companies seeking listing and existing companies driving new capital growth.
Another expert, Rotimi Olubi, Managing Director of ARM Securities Limited, highlighted the remarkable surge of the Nigerian stock market, with the NGX All-Share Index (ASI) rising by 163 basis points to reach 75,990.88. This surge has propelled year-to-date returns to an impressive 48.27%, instilling renewed confidence among local investors.
Despite challenges both domestically and globally, investor confidence remains robust, with strategic positioning in high-dividend yielding stocks and anticipation of the 2023FY earnings results shaping market sentiment. Olubi recommends that investors focus on stocks with strong fundamentals, particularly within the Banking and Oil and Gas sectors, aligning with the current market dynamics and anticipating future trends.
The positive market sentiment is evident in the performance of individual stocks, with 50 stocks gaining relative to 18 losers. AIICO Insurance, DAAR Communications, and other companies emerged as the highest price gainers, while Cadbury Nigeria, Thomas Wyatt Nigeria, and Mecure Industries experienced declines.
Market activity also saw a significant increase, with the total volume traded rising by 39.9% to 515.81 million units, valued at N5.57 billion. Transactions in the shares of Mutual Benefits Assurance, Transnational Corporation (Transcorp), and Unity Bank were particularly noteworthy, indicating heightened investor interest and activity.
This strong start to the year augurs well for the future of the Nigerian stock market, paving the way for continued growth and favourable returns. With ongoing policy reforms and strategic investor positioning, 2024 appears to be another potentially lucrative year for market participants.
