In terms of year-to-date returns on the Nigerian Exchange Limited, the Growth Board and Oil & Gas were the top-performing indices as of Christmas.
The PUNCH reported that other indices with outstanding returns include the banking index, NGX-AFR Bank Value Index (106.47%), the NGX AFR Div Yield Index (122.78%), and the NGX MERI Value Index (123.63%). According to the NGX’s weekly market report, the year-to-date returns on all of these indices were greater than 100%.
The growth board, which the exchange says is intended to enable small-cap and growth-oriented companies to use the capital market to raise long-term capital, boost growth, and promote liquidity, has a YTD of 249.10 per cent as of Friday.
Chellarams Plc (N3bn market cap), Ronchess Global Resources (7.371bn market cap), McNichols Plc (N725m market value), Living Trust Mortgage Bank Plc (N14.900bn market cap), newly listed Mecure Industries Plc (N48bn market cap), Briclinks Africa Plc (N62.50m) and The Initiates Plc (N961m) are among the companies listed on the growth board.
The favourable trend was driven by the market’s overall good activity. The Exchange’s Chief Executive Officer, Temi Popoola, revealed that the local bourse had a successful year at the NGX Made of Africa Awards.
“I think it’s been a good year for us in the market when you look at a few metrics,” Popoola said. “This year, the market is up almost 40%. When compared to other exchanges around the world, that is fairly good.
“Some may argue that the returns are not as strong in dollar terms, but the reality is that much of the capital in our market this year was local capital. Foreign investors left our market, and the largest investors are pension funds. I tell people that if my pension fund administrator can return 30% this year, I don’t even need a 40% return from NGX to be happy. I’d be a very happy person. I think we have done very well this year.”
Another indicator that has performed well this year is the NGX Oil & Gas indicator, which has gained 124.71% year to date.
According to market activity, the NGX Oil & Gas index rose to 1,039.25 basis points on Friday, up from 462.48 points on the previous trading day in 2022. This is a year-on-year growth of around 576.763.
The NGX Oil & Gas index’s performance was boosted by investors’ reaction to the withdrawal of fuel subsidies, which resulted in a considerable increase in fuel costs across the country and positively impacted the share prices of companies in the Oil & Gas sector.
Conoil Plc, which is included in the index, has a year-to-date return of 216.60 per cent and closed trading on Friday at N83.90 per unit. It has reached a year high of N112.50 and a low of N26.50 per unit. Eterna Oil has a YTD gain of 79.13 per cent, and MRS Oil has recorded a YTD of 644.86 per cent with a year high of N109.95 per share and a low of N14.10. It closed the last trading session priced at N105 per unit.
