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On Wednesday, Nigerian stocks continued their upward momentum for the tenth consecutive trading day.
This surge was fueled by increased investment in shares, leading to a significant rise in the All-Share Index (ASI), surpassing a record 100,000 basis points milestone.
The current level of the main stock index marks the pinnacle in the history of the Nigerian stock market.
The favourable market performance for the day can be attributed to increased buying activities among investors, particularly in key stocks such as DANGCEM (+6.49%), GTCO (+0.47%), BUACEMENT (+9.98%), TRANSCORP (+4.51%), BUAFOODS (+5.59%), and an additional 30 stocks.
This follows significant milestones recorded in Nigeria’s stock market in reaction to some of the reforms embarked upon by President Bola Tinubu since assuming office.
According to data from the Nigerian Exchange, the all-share index climbed to a new peak of 101,571.1 points, marking a 3% increase in less than a week.
At the close of Wednesday’s trading session, participants in the Nigerian equities market gained N1.61 trillion.
This gain was attributed to the rise in market capitalization, which surged from N53.967 trillion to N55.583 trillion compared to the previous day’s figures.
The market exhibited a positive breadth, with 35 stocks experiencing gains, 30 witnessing declines, and 52 maintaining their unchanged status across 12,080 deals.
This impressive performance follows the recent achievement of the Nigerian equity market, which surpassed Argentina’s to become the top-performing bourse globally.
Over the past 52 weeks, the overall return on the Nigerian equity market stands at an impressive 93.1%.
The beginning of the year has seen a positive trend in the stock market of Africa’s largest economy , driven partly by the central bank’s alignment with the Nigerian
Government’s ambitious goal of achieving a $1 trillion economy by 2030.
This commitment was underscored late last year when the central bank mandated financial institutions to bolster their capital levels in support of this initiative.
This development has sparked heightened interest in bank stocks, notably contributing to the robust performance of the Nigerian stock market in recent weeks, as indicated by the significant movement of the NGX Banking Index.
Additionally, the prevalence of negative real yields on fixed-income securities, fueled by elevated inflation rates , is prompting investors to redirect their capital from such assets towards stocks to recover and optimize their investments.
The performance across sectors exhibited a mixed trend, with three out of five sectors within our assessment recording advancements, while two experienced declines.
The Industrial Index emerged as the top performer, registering a notable gain of 7.64%.
The Consumer Goods and Oil/Gas indices followed closely, which recorded gains of 4.07% and 0.09%, respectively.
Conversely, the Insurance and Banking indices faced declines, posting losses of 1.52% and 0.61%, respectively.
The day’s positive performance was attributed to investors’ buying activities in major stocks like DANGCEM (+6.49%), GTCO (+0.47%), BUACEMENT (+9.98%), TRANSCORP (+4.51%), BUAFOODS (+5.59%) and 30 other stocks…CONTINUE READING>>
