In 2023, the global equity market experienced a remarkable surge, with its capitalization witnessing a substantial 13% increase, totalling over $13 trillion, according to a recent report released by the World Federation of Exchanges (WFE).
Although the global market capitalization soared, the “2023 Market Highlights” report highlighted a decline of 10.6% in trading value and 3.4% in trading volumes over the same period. Remarkably, all regions recorded their lowest annual trading value in the past three years.
Contrary to the global trend, the Nigerian equity market showcased exceptional resilience, with its market capitalization appreciating by a staggering 46.6% or N13 trillion in the same period.
The report noted that the average trade size plummeted to its lowest level in the past three years, at $2,776.45 per trade. Additionally, it noted a significant decrease in non-IPO listings in the Americas and EMEA regions, while the APAC region witnessed a surge to its maximum. However, the capital raised through IPOs witnessed a sharp decline of 59.3% compared to 2022, with only 1,217 IPOs welcomed across all regions, marking the lowest number in the past three years.
Moreover, the report revealed a noteworthy increase in exchange-traded derivatives contracts, including options and futures, reaching its highest level in the last three years. The total derivatives contracts traded amounted to 134.40 billion, reflecting a substantial 58.9% surge compared to 2022. Options dominated this increase by 89.4%, while futures saw a modest increase of 2.4%.
The surge in global market capitalization and other notable trends indicate the dynamic nature of the global equity market and its resilience to various economic challenges.
