Strong start to September: Nigerian stock market gains N536 billion

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Strong start to September: Nigerian stock market gains N536 billion

Despite concerns over rising inflation, interest rate hikes, and weaker macroeconomic indicators, the Nigerian Exchange Limited (NGX) witnessed a significant boost in investor confidence last week, resulting in a substantial N536 billion increase in market value.

The month of September began on a positive note, with the stock market opening at N36.422 trillion and closing at N36.958 trillion, reflecting a remarkable 1.47 percent capital gain.

Simultaneously, the All Share Index (ASI) also rose by 1.47 percent, moving from 66,548.99 points to 67,527.19 points.

The week’s cumulative gains amounted to an impressive N1.077 trillion, representing a 3.00 percent Week-to-Date (WtD) return.

NGX among top African stock exchanges with impressive gains

Notably, the NGX was recognized as one of Africa’s top-performing stock exchanges over the past three months, according to African markets, a platform that monitors African stock market performance.

During this period, the Ghana Stock Exchange took the lead with a remarkable +22.84 percent increase, followed closely by Nigeria’s NGX with +19.33 percent, while the Malawi Stock Exchange secured the third position with +15.79 percent returns.

Market analysts attributed this recent surge to investors’ fervent interest in low, medium, and high-capitalized stocks across various key sectors, buoyed by favorable policies introduced by President Bola Tinubu’s new administration.

Investors strategically positioned themselves to leverage the impressive earnings reported by listed companies.

Market experts believe that many investors, especially domestic ones, remain optimistic about the future of the economy, which explains why the stock market is defying prevailing macroeconomic uncertainties.

Cordros Research, in their financial market review, emphasized that the equities market’s resilience reflects heightened investor confidence in domestic growth, driven by essential policies enacted by Tinubu’s administration.

The implementation of policy reforms, accommodative monetary policy, and strong corporate earnings have supported buying activity throughout August.

Despite concerns about foreign investors staying on the sidelines due to FX illiquidity issues, the baseline expectation is that the market will yield a positive return of 25.8 percent for the full year of 2023.