Investors Gain N665.98bn as Stock Market Commences First Trading Day in 2024 Positive

Kayode Tokede

The stock market segment of the Nigerian Exchange Limited (NGX) started the first trading session of 2024 on a positive note, as investors’ bargain hunting in Airtel Africa Plc and 49 other stocks lifted the overall market capitalisation by N665.98 billion.

Specifically the stock market that closed 2023 at N40.918trillion appreciated by N665.98 billion yesterday, to close at N41.583trillion.

Owing to this, at the close of business yesterday, the NGX All-Share Index hit a new record 75,990.88 basis points. The All-Share Index gained 1,217.11 basis points or 1.63 per cent to close at 75,990.88 basis points from 74,773.77 2023 close.

Investors had earned mouth-watering return in 2023, as the overall market capitalisation appreciated by N13 trillion.

Yesterday’s gain was driven by renewed interest in Airtel Africa that appreciated by 5.99 per cent to close at N2,000 per share,

Analysts predicted sustained positive momentum this year over early passage of 2024 budget, and Federal Government policy reforms.

Speaking, the CEO, Wyoming Capital and Partners, Mr. Tajudeen Olayinka, attributed the positive trend on the first trading day in 2024 to investors’ interest.

According to him, “Investors’ interest was as a result of the 2024 budget signed by President Tinubu that largely rely on the use of private capital in funding some important developmental projects across the country.

“In a way, we are going to see more public companies get listed on the stock exchange for the purpose of raising new capital, while the existing listed companies will not be left behind in this development.

“So, I see a very bullish and active primary market in 2024, even though, there could be occasional moderation in price movement across the board, as investors take profit and engage in portfolio rebalancing.

“The fact that private sector will take the lead in navigating the economy out of its prolonged state of disequilibrium, we will see a better capital market in 2024.”

On his part, Managing Director, ARM Securities Limited, Rotimi Olubi, said the Nigerian stock market launched into the new year robustly, witnessing the NGX All-Share Index (ASI) surge by 163 basis points to reach 75,990.88 basis points.

“This significant spike bolstered the year-to-date returns to 48.27 per cent, a notable climb from last week’s 45.90 per cent. The market’s upswing was primarily steered by substantial gains in Airtel Africa, BUA Cement Plc, Transcorp, and Fidelity bank, compensating for losses in Stanbic IBTC Holdings Plc, GTCO, Cadbury, and International Breweries Plc.

“This optimistic trajectory appears to be an extension of the momentum gained in the previous year, instilling fresh confidence among local investors in the equities market following its impressive 2023 performance (45.90 per cent YtD).

“This confidence persists despite challenges both domestically and globally. Moreover, it seems investors are strategically positioning themselves in high-dividend yielding stocks in anticipation of the imminent release of the 2023FY earnings results.

“In light of these developments, our recommendation is for investors to focus their attention on stocks exhibiting robust fundamentals, particularly within the Banking and Oil and Gas sectors. This strategic approach aligns with the current market dynamics and positions investors favorably in anticipation of future trends.”

As measured by market breadth, market sentiment was positive, as 50 stocks gained relative to 18 losers. AIICO Insurance, DAAR Communications, SUNU Assurance, Ikeja Hotels, Linkage Assurance and Infinity Trust Mortgage Bank emerged the highest price gainer of 10 per cent each to close at 88 kobo, 99 kobo, N1.21, N6.60, 88 kobo and 60 kobo respectively, per share.

Multiverse Mining & Exploration followed with a gain of 9.96 per cent to close at N20.42, while Transnational Corporations advanced by 9.93 per cent to close at N9.52, per share.

On the other side, Cadbury Nigeria, Thomas Wyatt Nigeria and Mecure Industries led others on the losers’ chart with 10 per cent each to close at N17.10, N2.43 and N10.80 respectively, per share.

Prestige Assurance followed with a decline of 9.80 per cent to close at 46 kobo, while Consolidated Hallmark Holdings depreciated by 9.52 per cent to close at N1.33, per share.

The total volume traded increased by 39.9 per cent to 515.81 million units, valued at N5.57 billion, and exchanged in 9,370 deals. Transactions in the shares of Mutual Benefits Assurance led the activity with 101.631 million shares worth N51.627 million. Transnational Corporation (Transcorp) followed with a volume of 46.647 million shares valued at N440.665 million, while Unity Bank traded 35.221 million shares valued at N61.671 million.

Jaiz Bank traded 26.993 million shares worth N51.439 million, while United Bank for Africa (UBA) traded 20.075 million shares worth N513.852 million.