INVESTORS PUSH FOR STABLE FX AND FISCAL POLICIES TO SUSTAIN N15.7 TRILLION MARKET SURGE IN 2024
Detailed Breakdown:
1. Market Surge Overview: The Nigerian stock market has achieved a remarkable 27.8% year-to-date (YTD) gain, amounting to N15.7 trillion, with market capitalization rising from N40.918 trillion at the beginning of 2024 to N56.6 trillion by the end of September.
The all-share index (ASI) also surged 24%, indicating strong capital appreciation in various sectors.
2. Key Sector Performance:
The oil and gas sector led the growth with a 90.7% increase, driven largely by Oando and Total, which saw significant stock price appreciation.
The industrial goods sector grew by 41.9%, primarily influenced by Dangote Cement.
Consumer goods, insurance, and banking sectors followed with gains of 39.6%, 30.9%, and 4.1%, respectively.
Agricultural stocks, particularly Presco and Okomu Oil, also performed well.
3. Investor Sentiment and Concerns: Investors attribute the market's strong performance to reforms but emphasize the need for stable policies and addressing challenges such as foreign exchange (FX) instability, insecurity, and high energy costs.
Foreign investors remain concerned about these macroeconomic issues, which hinder new investments despite the market's recovery signs.
4. Calls for Government Action: Experts and shareholders have urged the government to maintain stable fiscal policies, ensure accessible FX rates for manufacturers, and address double taxation.
Patric Ajudua, President of the New Dimension Shareholders Association, called for creating a single interest rate and sustainable grants for listed companies to boost growth.
5. Market Resilience Amid Economic Challenges: Despite macroeconomic headwinds such as rising inflation and higher interest rates, Nigeria’s stock market has shown remarkable resilience, emerging as one of the world’s best-performing exchanges in the first quarter of 2024.
6. Future Outlook: Sustaining this momentum will require government efforts to stabilize the FX market, ensure security, and create a more favorable investment climate. Investors are optimistic but cautious, hoping for further reforms to sustain long-term growth.
Detailed Breakdown:
1. Market Surge Overview: The Nigerian stock market has achieved a remarkable 27.8% year-to-date (YTD) gain, amounting to N15.7 trillion, with market capitalization rising from N40.918 trillion at the beginning of 2024 to N56.6 trillion by the end of September.
The all-share index (ASI) also surged 24%, indicating strong capital appreciation in various sectors.
2. Key Sector Performance:
The oil and gas sector led the growth with a 90.7% increase, driven largely by Oando and Total, which saw significant stock price appreciation.
The industrial goods sector grew by 41.9%, primarily influenced by Dangote Cement.
Consumer goods, insurance, and banking sectors followed with gains of 39.6%, 30.9%, and 4.1%, respectively.
Agricultural stocks, particularly Presco and Okomu Oil, also performed well.
3. Investor Sentiment and Concerns: Investors attribute the market's strong performance to reforms but emphasize the need for stable policies and addressing challenges such as foreign exchange (FX) instability, insecurity, and high energy costs.
Foreign investors remain concerned about these macroeconomic issues, which hinder new investments despite the market's recovery signs.
4. Calls for Government Action: Experts and shareholders have urged the government to maintain stable fiscal policies, ensure accessible FX rates for manufacturers, and address double taxation.
Patric Ajudua, President of the New Dimension Shareholders Association, called for creating a single interest rate and sustainable grants for listed companies to boost growth.
5. Market Resilience Amid Economic Challenges: Despite macroeconomic headwinds such as rising inflation and higher interest rates, Nigeria’s stock market has shown remarkable resilience, emerging as one of the world’s best-performing exchanges in the first quarter of 2024.
6. Future Outlook: Sustaining this momentum will require government efforts to stabilize the FX market, ensure security, and create a more favorable investment climate. Investors are optimistic but cautious, hoping for further reforms to sustain long-term growth.