The Nigerian Exchange Limited (NGX) concluded the first week of 2024 on a positive note, with sustained investor confidence driving a 6.54% increase in the All-Share index, closing at 79,664.66 points. The surge has sparked optimism for a potentially bullish market in 2024. The overall market performance indicated gains in various indices, with only NGX Growth and NGX Sovereign Bond Indices experiencing depreciation.
The All-Share Index opened the week at 74,773.77 points and closed at 79,664.66 points, reflecting a gain of 6.54% or 4,890.89 basis points. The market capitalization, which began at N40.917 trillion, ended the week at N43.593 trillion, indicating a week-to-date gain of approximately N2.676 trillion.
Key drivers of the positive performance included strong showings in DANGCEM (+1.59% w/w), AIRTELAFRI (+5.99% w/w), and MTNN (+7.95% w/w). These outweighed losses in STANBIC (-5.96% w/w), GUINNESS (-7.58% w/w), and CADBURY (-11.05% w/w). The year-to-date (YTD) return rose to 6.54%.
A total turnover of 3.320 billion shares, valued at N41.755 billion, was traded during the week in 46,994 deals. This represented a significant increase compared to the previous week, with the Financial Services Industry leading the activity chart.
Market analysts attribute the positive momentum to various factors, including smooth elections, unification of multiple exchange rates, policy reviews in monetary and fiscal sectors, and commissioning the first indigenous private refinery. The new government in 2024 is expected to continue to implement policies fostering a conducive environment for businesses, and attracting investments to the capital market.
Analysts project further improvement in 2024, anticipating more companies approaching the market for listings and public offerings. The dependence on private capital to address infrastructure deficits and potential pro-market policies are driving factors for a positive outlook in the equities market.
