Yesterday, the total value of all quoted equities in the Nigerian stock market crossed a threshold of N40 trillion.
With its 10th consecutive weekly gain, the market capitalization opened at N39.657 trillion but closed at N40.164 trillion after gaining N507 billion in yesterday's market. This is the highest point the market has reached in over 63 years of stock market history.
The rally pushed the average year-to-date return for Nigerian equities to 43.21%, implying that investors had so far this year earned about N12.1 trillion in net capital gains, the NATION reports.
It was all seen that quoted equities at the NGX opened 2023 at N27.915 trillion. In 2022, it opened at N22.297 trillion.
The All Share Index (ASI) rose to 1.28% to close at 73,397.71 points. It opened in 2023 at 51,251.06 points. Also, the ASI opened at 42,716.44 points in 2022.
Market analysts have commended the N40 trillion mark as a significant point for the market, discussing the drawbacks that have prevented previous trading from reaching this threshold.
Comments From Market Leaders
Afrinvest Securities said the milestone achieved yesterday at the NGX was “a historical high.”Speaking on the achievement, Mr. Olatunji Amolegbe, the Managing Director of Arthur Steven Asset Management Limited, said the N40 million milestone recorded in over 63 years since the NGX began is an outstanding achievement, stating that this was the first time.
Mr. David Adonri, the managing director of HighCap Securities, also spoke about the achievement. He said that the N40 trillion mark was a remarkable record, saying that the capitalization of equities on the NGX has never crossed the N40 trillion threshold.
SCM Capital Analysts expressed their joy in the milestone achieved, as they believe it will continue to have a positive report throughout the remaining days of 2023.
“The financial services sector is anticipated to maintain market liquidity, while fundamentally strong industrial goods stocks are projected to experience positive sentiments,” SCM Capital stated.
The analysis showed that investors in various sectors earned over 60% and 125% returns in capital gains so far this year, revealing the strength of equities as the only asset in Nigeria that wasn't severely affected by the inflation rate in the economy.
Read more: https://www.investingport.com/niger...apitalization-first-in-63-years-of-existence/