Stock Market Hits Historic Record, Crosses 70,000bpts Mark

Kayode Tokede

The stock market arm of the Nigerian Exchange Limited (NGX) attained a new high yesterday, as the NGX All-Share Index historically increased to a all-time high and shattered the 70,000basis points psychological mark.

Specifically, the NGX All Share Index (ASI) gained 1,345.57 basis points or 1.94 per cent to close at 70,581.76 basis points on the first trading day in November, 2023, from the 69,236.19 basis points it opened for trading

Thus, the Year-to-Date (YtD) return advanced to +37.7 per cent.

Also, market capitalisation appreciated by N739 billion to close at N38.778 trillion yesterday, from the N38.039 trillion it opened for trading.

The stock market has been on an upward trajectory since the entry of the new administration led by President Bola Tinubu, due to reforms such as the removal of fuel subsidy and the liberalisation of the foreign exchange market.

Data from NGX showed that while foreign investor participation in the capital market was slowly rising, domestic investor sentiment has been highly positive, with increased allocation into equities. Already, total transactions in the equity market hit N2.71 trillion as of September end, 38per cent higher than the corresponding period in 2022.

While investor sentiment suggests that the Nigerian stock market’s recent peak was not a mere flash in the pan, experts stressed the importance of ongoing stability, security, and continued economic reforms. The historic high of the Nigerian stock market has created ripples in the global financial arena, with investors keenly observing the nation’s economic trajectory.

Although it does not guarantee prosperity, it does signify global recognition of Nigeria’s vast potential. The hope was that this extraordinary accomplishment would lead to improved living standards for Nigerians and bolster economic stability for the nation.

However, the record achieved yesterday was impacted by gains recorded in medium and large capitalised stocks, amongst which were: Airtel Africa, Presco, FBN Holdings (FBNH), Zenith Bank and Cadbury Nigeria.

Market breadth closed positive as 37 stocks gained relative to 16 decliners. Airtel Africa recorded the highest price gain of 10 per cent to close at N1,694.10, while University Press and Chams Holding Company followed with a gain of 9.91 per cent each to close at N2.33 and N2.44 respectively, per share.

NEM Insurance rose by 9.90 per cent to close at N5.55, while FBNH appreciated by 9.78 per cent to close at N19.65, per share. On the other hand, Caverton Offshore Support Group led the losers’ chart by 7.74 per cent to close at N1.43, per share. Champion Breweries followed with a decline of 6.85 per cent to close at N3.40, while C & I Leasing lost 6.41 per cent to close at N3.36, per share.

UPDC Real Estate Investment Trust depreciated by 2.70 per cent to close at N3.60, while Unilever Nigeria declined by 2.44 per cent to close at N14.00, per share.

The total volume traded increased by 24.51 per cent to 601.733 million units, valued at N11.016 billion, and exchanged in 7,444 deals. Transactions in the shares of United Bank for Africa (UBA) topped the activity chart with 163.562 million shares valued at N3.473 billion. FBNH followed with 94.655 million shares worth N1.841 billion, while Guaranty Trust Holding Company (GTCO) traded 45.752 million shares valued at N1.601 billion.

Access Holdings Consolidated traded 36.694 million shares valued at N641.992 million, while Universal Insurance sold 34.716 million shares worth N8.938 million.

Commenting on the performance of the stock market, analysts at InvestmentOne Research stated, “The local equities market closed northwards today due to the impressive performance seen in Airtel Africa and the Banking sector.

“Going forward, we expect investor’s sentiments to be swayed by the search for real positive returns and developments in the interest rate space.

“We reiterate that this may be a great period to pick up some quality names with a medium to long-term investment horizon.”