Stock market capitalisation gains N15.25trn

The Nigerian Exchange Limited (NGX) market capitalisation has gained N15.25 trillion in value in the first five months of the year, amidst domestic and global economic headwinds.

NGX disclosed this in a report on Thursday, June 6, 2024.

It stated that the market attained the record following investors’ continuous investment in fundamentally sound quoted companies on the bourse.

The Exchange said N15.25 trillion market capitalisation growth was recorded amid the spate of rising insecurity, inflation, and hikes in the Central Bank of Nigeria’s (CBN) monetary policy rate, among other macroeconomic challenges and global uncertainty.

The NGX said: “Specifically, the overall market capitalisation closed May 2024 at N56.172 trillion, gaining N15.25 trillion or 37.28 per cent from N40.917 trillion, the stock market opened for trading this year.

“The NGX All-Share Index increased to 99,300.38 basis points, about 24,526.61 or 32.8 per cent Year-To-Date (YTD) performance from 74,773.77 basis points it closed for trading in 2023.”

The Exchange noted that at 32.8 per cent growth in the major market index, the Nigerian stock market maintained its position as the most performing Exchange in Africa.

Equity market rebounds as investors gain N132bn

NGX said it had enforced compliance, transparency and a market-friendly environment that continued to impact heavy participation in stock trading by both local and foreign investors.

The regulator said since the beginning of the year, the stock market has witnessed an unprecedented rally and buying interest, especially in the industrial goods, oil and gas sector, and consumer and sub-sector.

According to the Exchange, these sectors have continued to trigger massive bargain hunting in large company shares.

NGX said: “For instance, the NGX Industrial Index has gained 73.08 per cent YTD to 4,694.42 basis points as of May 2024, while the NGX Consumer Goods Index appreciated by 39.5 per cent to close at 1,564.19 basis points.

“The taking position in Dangote Cement Plc influenced the 73.08 per cent YTD growth in NGX Industrial Index.

“The stock price of Dangote Cement has appreciated to N656.70 per share as at May 2024, about 105.28 per cent growth from N319.9 per share the stock opened for trading this year.

“Among the top index performance was the NGX Oil/Gas Index which gained 24.07 per cent YTD performance to 1,294.16 basis points and the NGX Insurance Index which gained 14.17 per cent to close May 2024 at 367.23 basis points.

“Amid reforms in the banking sector, the NGX Banking Index dropped by 11.13 per cent to close May 2024 at 797.37 basis points as investors trade listed banking stocks with caution.”

The Star