The Nigerian Exchange Limited (NGX) has achieved a historic milestone as its market capitalization surged beyond the N40 trillion mark.
This remarkable feat was complemented by the All-Share Index (ASI) crossing the impressive threshold of 73,397.71 points, indicating a substantial 1.28% increase.
The noteworthy development comes on the heels of increased activity in the banking sector, steering the exchange to record-breaking highs.
At the close of trading on Wednesday, both the market capitalization and the ASI closed at N40.164 trillion and 73,397.71 points, respectively.
The driving forces behind the bullish day were banking stocks like GTCO, AccessCorp, Transcorp, FCMB, and United Bank for Africa.
The collective performance of these key players propelled the exchange to achieve a noteworthy upswing, captivating the attention of market participants.
The value of trade on this pivotal day experienced a substantial surge rising by 84.62% to N12.829 billion.
Simultaneously, the volume of traded units grew by 34.88% to 554.64 million units.
The number of deals transacted stood at 7,910 at the close of trading, underscoring the heightened activity and investor participation during this monumental session.
This momentous achievement comes a mere 10 months after the market cap reached the N30 trillion milestone, a testament to the sustained interest of domestic investors.
The optimism surrounding the market’s capability to achieve even greater heights is palpable among capital market stakeholders.
Tunde Amolegbe, the Managing Director of Arthur Stevens Asset Management Limited, attributes the bullish sentiments to the forward-pricing nature of the stock market.
He highlights the market’s anticipation of positive outcomes from the policy reforms initiated by the current administration.
However, he emphasizes the potential for sharp corrections if these expectations fail to materialize.
Analyst Rotimi Fakayejo projects further upward movement, anticipating the ASI to hit 75,000 before the year concludes.
He cites positive expectations for the 2023 year-end results of listed companies, particularly in the banking sector.
Fakayejo envisions improved returns and heightened market performance in 2024, as foreign investors regain confidence in the market, ushering in a new era of prosperity.
The gainers’ chart on this historic day was led by Transcorp, Multiverse, Infinity Trust Mortgage Bank, ETranZact, and Caverton, with gains ranging from 9.66% to 10%.
Meanwhile, the top five losers included Tantalizers Plc, Thomas Wyatt, The Initiates Plc, Juli Plc, and Chams Plc, experiencing losses between 9.05% and 10%.
As the NGX celebrates this momentous achievement, market participants and stakeholders remain watchful, navigating the dynamic landscape of opportunities and challenges that lie ahead.
The record-breaking performance underscores the resilience and potential of the Nigerian capital market, setting the stage for continued growth and prosperity.
