Nigeria and Egypt Shine as Top African Stock Markets with Outstanding 10-Year Returns
Key Highlights:
1. Nigeria and Egypt Lead Africa’s Stock Market Gains
• Egypt delivered the highest cumulative return of 351%, followed by Nigeria with 147%, and Ghana with 121% over the past decade (2014–2023).
• These returns outpaced six other major African markets:
• South Africa: +85%
• Morocco: +62%
• Côte d’Ivoire: +19%
• Botswana: +11%
• Kenya: -12% (negative return).
2. What’s Driving Nigeria’s Stock Market Success?
Strategic New Listings: Increased activity in the secondary market, fueled by new listings, has boosted investor confidence.
Naira Assets’ Appeal: Currency devaluation challenges were countered with opportunities for growth, attracting international investors.
Sectoral Reforms: Key sectors, like oil and gas, saw transformative changes, including subsidy removals and exchange rate liberalization, enhancing operational efficiency and market performance.
Inflation Hedge: High inflation encouraged investment in equities, which aligned with inflationary trends to preserve investor value.
3. Year-to-Date Market Updates (2024)
• Nigeria’s NGX-ASI surged 35.25%, crossing the 100,000-point milestone to reach 101,129.09 points.
• Côte d’Ivoire followed with a 28.11% rise, while Ghana led with an impressive 53.65% increase.
• Other notable gains include:
• Morocco: +21.76%
• Egypt: +22.63%
• South Africa: +9.85%
4. NGX CEO’s Insights on Nigeria’s Growth
Temi Popoola, CEO of the Nigerian Exchange Group (NGX), highlighted:
• Blue-Chip Companies: Their resilience and consistent performance are key to driving market returns.
• Economic Reforms: Reforms post-COVID-19, such as regulatory advancements and stable FX policies, have enhanced market integrity.
• Outlook for 2025: Expectations for increased liquidity, stable macroeconomic conditions, and sustained investor confidence.
5. Analysts’ View
Despite inflation rising to 34.60% in November 2024, Nigeria’s equities market remains bullish. Analysts credit this to:
• Consistent trade surpluses (N5.81 trillion in Q3 2024).
• Strong performance in banking, insurance, and oil sectors.
• Positive macroeconomic data and reforms.
Nigeria’s stock market continues to exemplify resilience and opportunity, making it a hub for local and international investors seeking long-term gains.
Key Highlights:
1. Nigeria and Egypt Lead Africa’s Stock Market Gains
• Egypt delivered the highest cumulative return of 351%, followed by Nigeria with 147%, and Ghana with 121% over the past decade (2014–2023).
• These returns outpaced six other major African markets:
• South Africa: +85%
• Morocco: +62%
• Côte d’Ivoire: +19%
• Botswana: +11%
• Kenya: -12% (negative return).
2. What’s Driving Nigeria’s Stock Market Success?
Strategic New Listings: Increased activity in the secondary market, fueled by new listings, has boosted investor confidence.
Naira Assets’ Appeal: Currency devaluation challenges were countered with opportunities for growth, attracting international investors.
Sectoral Reforms: Key sectors, like oil and gas, saw transformative changes, including subsidy removals and exchange rate liberalization, enhancing operational efficiency and market performance.
Inflation Hedge: High inflation encouraged investment in equities, which aligned with inflationary trends to preserve investor value.
3. Year-to-Date Market Updates (2024)
• Nigeria’s NGX-ASI surged 35.25%, crossing the 100,000-point milestone to reach 101,129.09 points.
• Côte d’Ivoire followed with a 28.11% rise, while Ghana led with an impressive 53.65% increase.
• Other notable gains include:
• Morocco: +21.76%
• Egypt: +22.63%
• South Africa: +9.85%
4. NGX CEO’s Insights on Nigeria’s Growth
Temi Popoola, CEO of the Nigerian Exchange Group (NGX), highlighted:
• Blue-Chip Companies: Their resilience and consistent performance are key to driving market returns.
• Economic Reforms: Reforms post-COVID-19, such as regulatory advancements and stable FX policies, have enhanced market integrity.
• Outlook for 2025: Expectations for increased liquidity, stable macroeconomic conditions, and sustained investor confidence.
5. Analysts’ View
Despite inflation rising to 34.60% in November 2024, Nigeria’s equities market remains bullish. Analysts credit this to:
• Consistent trade surpluses (N5.81 trillion in Q3 2024).
• Strong performance in banking, insurance, and oil sectors.
• Positive macroeconomic data and reforms.
Nigeria’s stock market continues to exemplify resilience and opportunity, making it a hub for local and international investors seeking long-term gains.