The benchmark index of the Nigerian Exchange Limited broke beyond the 100,000 basis point barrier on Wednesday, creating a new record high.
The PUNCH reported that at the closing of trade, the local bourse’s All-Share Index rose 2,954.14 points, or 2.99 per cent, to a record high of 101,571.11.
The ASI ended 2023 at 74,773.77, representing a 35.83 per cent year-to-date return.
The Managing Director of Arthur Steven Asset Management Limited, Tunde Amolegbe, predicted that the ASI could rise by up to 35% in 2024 while speaking at the Capital Market Correspondents Association of Nigeria January forum in Lagos with the theme ‘Review of 2023 Market Performance and Outlook for 2024’.
The local market’s year-to-date rise has outpaced inflationary levels in the country, exceeding other African, European, and Middle Eastern indices tracked by Bloomberg.
On Wednesday, the market capitalization increased by 2.99 per cent to N55.583 trillion, marking another significant milestone for the market.
Financial analyst, Olaide Baanu, commented on the incident, saying, “The NGX-ASI has established a new all-time record by exceeding 100,000 basis points in the Nigerian stock market’s performance.
“It is crucial to remember that the stock market reflects economic circumstances and growth forecasts, therefore this new milestone represents confidence and optimism in the economy.
“The impressive gain was largely attributable to price improvements in bellwether companies including Dangote Cement, BUA Cement, BUA Foods, MTN Nigeria, and the financial services sector.
The immediate past National Coordinator of the Independent Shareholders Association of Nigeria, Dr Anthony Omojola, stated that, “Many of us are pleased that this is happening during our lifetime. If Nigeria, as a growing country, can reach this level, I know by the time our economy matures and we become developed, we would be one of the world’s most respected and reckoned countries.
“As we pass 100,000 basis points, I hope to see more of our companies with strong fundamentals justify their new valuations and be able to sustain them in the medium to long term through dividend payments as the ultimate return on investment.”
“I want the government to step up the processes of ease of doing business so that more companies can grow and enjoy higher prices like others and not just a few companies that have been overpriced now because some people showed interest in them.”
The market’s bullish run entered its tenth trading day with a total value of stocks traded by investors as N8.04 trillion, a 51% decrease from the previous day.
Transnational Corporation Plc, an indigenous conglomerate, was the most liquid stock on NGX on Wednesday, with investors exchanging N1.6 trillion worth of stock in 1,207 trades.
BUA Cement, Dangote Cement, United Bank for Africa, and Zenith Bank were all among the top five highest-volume traded equities.
The equities market’s performance also coincides with a change in management at the Nigerian Exchange Group, which has appointed Temi Popoola as Group Managing Director/Chief Executive Officer and Jude Chiemeka as Acting CEO of NGX, the operating exchange subsidiary.
