Nigerian Stock Market Starts 2024 with a Bang, Market Cap Rises by N667 Billion
The Nigerian equities market commenced 2024 with an auspicious start, as investors displayed considerable interest in the full-year earnings and dividend payout for 2022. This led to a significant upturn, resulting in a N667 billion increase in market capitalisation.
The All-Share Index also saw a noteworthy rise of 1,217.11 points, closing at 75,990.88 points, representing a 1.63 per cent gain. Market capitalisation concluded at N41.583 trillion, marking a substantial increase of N667 billion.
The surge in market performance was driven primarily by impressive price upticks in various large and medium capitalized stocks, with companies such as Airtel Africa, Presco, BUA Cement, PZ Cussons Nigeria, and Multiverse Mining & Exploration taking the lead.
In the midst of this positive momentum, market breadth also demonstrated a favorable sentiment, with 50 stocks recording gains as opposed to 18 losers. Notable gainers included AIICO Insurance, DAAR Communications, SUNU Assurance, Ikeja Hotels, Linkage Assurance, and Infinity Trust Mortgage Bank.
Analysts at Vetiva Dealings and Brokerage have noted that the optimism from the previous year has carried over into the current trading sessions, and they anticipate a mixed trading session in the coming days.
Stocks such as DAAR Communications, SUNU Assurance, Ikeja Hotels, Linkage Assurance, and Infinity Trust Mortgage Bank saw the highest price gains, all registering a 10 per cent increase in their stock prices. On the other hand, Cadbury Nigeria, Thomas Wyatt Nigeria, and Mecure Industries experienced a 10 per cent decline in their stock prices, leading the losers’ chart.
The total volume traded saw a substantial increase of 39.9 per cent, amounting to 515.81 million units, valued at N5.57 billion, and exchanged in 9,370 deals. Notable among these were the shares of Mutual Benefits Assurance, Transnational Corporation (Transcorp), Unity Bank, Jaiz Bank, and United Bank for Africa (UBA).
The strong performance of the market at the beginning of the year has sparked significant interest among investors and industry professionals. As the year progresses, it will be fascinating to observe how these developments continue to unfold and shape the future of the Nigerian stock market.
