The Nigerian Exchange Limited (NGX) now ranks among the best performing markets in Africa.
Amidst the many challenges rocking the nation’s economy, the Nigerian Exchange Limited emerged one of the best performing exchanges in Africa during a 3-months duration.
A market research website that tracks the performance of exchanges in Africa, shared this information.
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According to the website, Ghana Stock Exchange (+22.84%) emerged first while NGX (+19.33%) emerged second on the list, followed by Malawi stock exchange (+15.79%).
This was facilitated by strong positive sentiment, as market capitalisation which opened in August at ₦35.011 trillion, ended at ₦36.422 trillion, hence gaining ₦1.41 trillion.
The NGX All-Share Index (ASI), was 64,337.52 basis points on August 3, 2023, and closed at 66,548.99 basis points at the end the month on August 31, gaining 2,211.47 basis points or 3.44%.
Interestingly, the market traded in mixed sentiments during the month under review, as investors jostled for low, medium, and high capitalised stocks across some major sectors.
Meanwhile, President Bola Tinubu’s policies have helped investors position themselves strategically to take advantage of the recent record earnings posted by quoted firms.
Market analysts have maintained that most investors, particularly are optimistic that the economy will take shape soon, hence the reason the stock market is defying current macroeconomic uncertainties.
Equities Market Resilience
Cordros Research in their Market review and outlook for financial markets entitled; veering from the watershed point, revealed that investors are optimistic.
The report shows that equities market resilience reflects heightened investors’ optimism for domestic growth with the new administration’s promulgation of long-needed policies.
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More so, the implementation of policy reforms, accommodative monetary policy and resilient corporate earnings have so far supported buying activities in August.
The report further said that “even though foreign investors are expected to stay on the sidelines, as long as FX illiquidity issues persist, its baseline expectation is that the market will deliver a positive return of 25.8% in the full year of 2023″.
