Emmanuel OchayiThe Nigerian Exchange Market experienced a surge in the first quarter of 2024, recording gains for investors and surpassing significant milestones.
The market’s bullish trend, which began in 2023, continued into 2024, propelling the All-Share Index (ASI) to new heights and indicating robust growth.
Join our WhatsApp ChannelClosing 2023 with an ASI of 74,773.77 points, the market witnessed a 45.90 percent growth, setting the stage for further expansion. By the end of March 2024, the ASI soared to 104,562.06 points, reflecting a 39.84 percent appreciation.
The market capitalization also experienced substantial growth, surging from N27.915tn at the end of 2022 to N40.917tn by the close of 2023. By the end of March 2024, it reached N59.120tn, edging closer to the historic N60tn mark.
A significant highlight of the first quarter was the emergence of new high-value companies on the exchange, including FBN Holdings, with the listing of Transcorp Power Plc further boosting market sentiments.
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Commenting on the market’s performance, stockbroker David Adonri of Highcap Securities emphasized the role of sentiment, stating, “The prolonged rally that started last year at the heels of economic reforms continued into the first quarter of 2024.”
He noted that while the market’s performance was impressive, it was primarily driven by sentiment rather than strong fundamentals.
Research Analyst Mercy Okon from Parthian Securities highlighted the market’s robust start to the year, driven by substantial gains in banking and high-cap stocks. However, she noted a notable pullback in February due to profit-taking activities and various economic challenges.
Looking ahead to the second quarter, Okon projected mixed performance, citing influences such as macroeconomic instabilities, corporate actions, and capital-raising activities in the banking sector.
Despite potential challenges, she expressed optimism about the resilience of the Nigerian equities market.
Overall, the first quarter of 2024 marked a period of historic growth for the Nigerian Exchange Market, showcasing its strength and potential amid evolving market dynamics and economic uncertainties. Investors remain cautiously optimistic as they navigate through the opportunities and challenges ahead.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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