Nigerian Stock Market Sees Bullish Start to 2024, Gains N1.51 Trillion in 2 Days
The Nigerian stock market commenced the year 2024 with a strong performance, accruing an impressive N1.512 trillion in gains during the initial two trading days. This surge in market capitalisation propelled the All-Share Index by 3.70 per cent, reaching 77,537.57 points by the close of trading on January 3, 2024.
Analysts attribute this upward trajectory to the extended bullish and Santa Claus rally from the previous year. The forthcoming unaudited fourth quarter financials of listed companies, as well as the first Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting for the year, have also contributed to this optimistic start.
Afrinvest Limited has projected a continued rally on the stock exchange, as investors maintain optimism about the equities outlook for the year. Similarly, Ambrose Omordion, the chief operating officer of InvestData Consulting Limited, anticipates a positive sentiment to persist, particularly in light of the upcoming unaudited Q4, 2023 financial reports and the expected volatility surrounding the upcoming MPC meeting. He also advises investors to leverage potential price corrections and monitor global and domestic trends and events.
Market activities for the first two trading days have showcased gains in medium and large capitalised stocks, with companies like Presco, Conoil, BUA Foods, Stanbic IBTC Holding, and FBN Holdings (FBNH) leading the charge. In terms of market breadth, 72 stocks gained compared to only seven losers, demonstrating an overall positive market sentiment.
A closer look at yesterday’s trading activities reveals significant gains in stocks such as Berger Paints, Dangote Sugar Refinery, Cornerstone Insurance, Custodian Investment, FCMB Group, Ikeja Hotels, Morison Industries, NASCON Allied Industries, United Bank for Africa (UBA), University Press, and Infinity Trust Mortgage Bank. Conversely, Learn Africa, Champion Breweries, C&I Leasing, Nigerian Exchange Group, and Ellah Lakes experienced declines.
The total volume traded saw a substantial increase of 79.83 per cent, reaching 927.558 million units valued at N10.691 billion. These transactions were executed across 11,629 deals, indicating a robust level of market activity.
The performance of the Nigerian stock market in the first two trading days of 2024 signals a promising start for investors and market participants. With a bullish outlook and positive sentiment, coupled with a slew of upcoming financial disclosures and monetary policy decisions, the stage is set for an eventful and potentially rewarding year on the Nigerian bourse.
