Positive Momentum in Nigerian Stock Market Continues
The Nigerian Exchange Ltd. (NGX) experienced a notable surge on Friday, as the All-Share Index (ASI) saw a 0.36% increase, closing at 74,773.77, an upturn of 271.19 points from the previous day’s close of 74,502.58. Correspondingly, the market capitalisation rose by N148 billion to reach 40.924 trillion, reflecting a 0.36% increase from the previous value of N40.776 trillion. Consequently, the Year-to-Date (YTD) return stands at an impressive 45.9%.
The rise in the stock market can be attributed to heightened activity in the trading of shares of Tier-one banks, telecommunication companies, luxury hotels, and manufacturing firms. Notably, Zenith Bank led in volume traded, with 28.89 million units, while Geregu topped the value chart with transactions worth N7.22 billion. Learn Africa and Transcorp Hotel also made significant gains, closing with a 10% increase at N3.19 and N70.18 per share, respectively.
Conversely, SUNU Assurances saw a 5.17% decline, closing at N1.10 per share, leading the decreasing percentage chart, followed by FTNCOCOA Processors and Nigerian Aviation Handling Company (NAHCO), which depreciated by 4.52% and 4.51% respectively. Tantalizer and Sterling Nigeria also experienced losses, shedding 4.08% and 3.16% in value per share.
Despite these fluctuations, analysts at Vetival Securities Ltd. have expressed optimism about the market’s performance, stating, “It was an impressive run in the equity market this year, with a YTD return of 45.90%. We expect the positive sentiments to filter into early next year, as investors continue to take position in the expected growth sectors.”
In summary, the recent upsurge in the Nigerian stock market reflects the resilient nature of the country’s economy and points towards potential opportunities for investors. As the positive trend continues, both local and international stakeholders are keenly observing the developments, anticipating further growth and stability in the market.
In conclusion, the steady upward movement in the stock market is a testament to the strength of the Nigerian economy and the confidence of investors in its future potential. With promising forecasts for the coming year, the outlook for the stock market appears to be bright, laying groundwork for sustained growth and profitability.
