Investors made a robust yield of ₦8.51 trillion gain on Friday, at the Nigerian Stock Exchange.
At the end of the last weekday of trading on the Nigerian Stock Exchange (NGX), Investors made robust yield on investment as returns in eight months of 2023 increased by ₦8.51 trillion.
NGX market capitalisation closed yesterday at ₦37 trillion from ₦27.915 trillion the stock market closed for trading in 2022.
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NGX All-Share Index (ASI) increased by 978.20 (1.47%) points to close at 67,527.19, representing a 1-week gain of 3%, a 4-week gain of 3.57%, and an overall year-to-date gain of 31.76%.
Investors bargain-hunting for fundamental stocks continued with expectations that the Forex reforms of President Tinubu will stimulate significant improvements in the domestic economy.
The rally nudged the average year-to-date return for stock market to 66,548.99 basis points (29.8%) as at the close of trading in August from 51,251.06 basis points, it closed in 2022.
This implies that investors have earned about ₦8.51 trillion in capital gains between January and August of 2023.
Nigeria’s average return of 29.8% is one of the five highest returns globally, ahead of several advanced and emerging global stock markets.
The stock market performance so far is on the backdrop of rising inflation, social unrest, global uncertainty and other economic challenges which surely had an impact on the market during the early part of the year.
The market has rallied amid buying interest from investors, especially in bellwether stocks such as Seplat Energy Plc, MTN Nigeria Communications Plc, Dangote Cement Plc, Zenith Bank Plc, Guaranty Trust Holding Company Plc, among others.
Other performing indices include NGX Premium Index, NGX Banking Index, NGX Pension Index, and and NGX Insurance Index.
The bullish pricing trend at the stock market has also seen a corresponding level of activities.
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According to the NGX, market operators were of the view that “the policies of the new administration under President Bola Tinubu” had “led to the rise in the fortunes of investors”.
The NGX stated that the stock market performance was particularly driven by “a surge in banking stocks as investors strategically positioned themselves, taking advantage of the recent record earnings posted by banks”.
