Big Bucks, Bigger Smiles! Investors’ Income Rises by N1.8 Trillion on Strong Earnings & Falling Yields

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Olori Uwem

Well-Known Member
Mar 18, 2024
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Big Bucks, Bigger Smiles!

Investors’ Income Rises by N1.8 Trillion on Strong Earnings & Falling Yields

If your portfolio has been smiling lately, it’s not just you — the entire Nigerian equities market is basking in some serious sunshine ☀️.

What’s Driving the Wealth Surge?
Investors on the Nigerian Exchange (NGX) just got N1.8 trillion richer, thanks to:
• Strong corporate earnings
• Declining treasury bill yields
• And of course… a pinch of bullish optimism ✨

The All-Share Index (ASI) jumped by 2.2% to close at 134,452.93 points, while market capitalization surged to N85.06 trillion — delivering a juicy 30.63% YTD return.

And in case you’re wondering, “Is it just one or two sectors leading the charge?”
Nope! It’s a broad-based rally, with all six major sector indices closing in the green!

Sector Highlights:
• ️ NGX Industrial: +4.66%
• ️ NGX Insurance: +3.07%
• NGX Consumer Goods: +2.81%
• ️ NGX Oil & Gas: +0.87%
• NGX Banking: +1.84%
• NGX Commodities: +2.24%

Top gainers like International Energy Insurance, Sovereign Insurance, BUA Cement, Lafarge Africa, and Julius Berger powered the rally.


But Wait — Where Did the Volume Go?

Interestingly, while prices flew high, trading volume dropped by a massive 78.9%, and trade value fell 77.6%. Why?
Analysts believe fund managers are quietly adjusting their portfolios ahead of month-end. ️


What Analysts Are Saying:

Falling yields = a nudge toward equities.
MPC’s decision to hold rates steady is giving confidence.
Q2 earnings season is stirring expectations.
Profit-taking? Possible. But eyes remain on fundamentally strong stocks.

As Cordros Capital put it:

“With lower auction rates, we anticipate a rotation into equities for better risk-adjusted returns.”

✨ Takeaway for Investors:

Now’s a good time to know what you hold and why you hold it. Solid earnings + lower fixed-income returns = a compelling case for staying positioned in quality stocks.

So, if you haven’t reviewed your portfolio yet, maybe it’s time to take a “stock” of things…