Investors in the Nigerian Exchange (NGX) have experienced a prosperous start to 2024, enjoying significant returns amidst a backdrop of economic challenges.
The NGX emerged as Africa’s top-performing exchange in the first two months, returning 33.70% on investments.
According to a statement released by the NGX on Tuesday, the local bourse surpassed renowned African exchanges such as the Johannesburg Stock Exchange, Egyptian Exchange (EGX 30) Index, and The Ghana Stock Exchange in terms of performance.
This achievement follows an earlier recognition in January when the NGX was hailed as the world’s best-performing stock market in the initial three weeks of the year, surpassing competitors like Argentina.
The market’s capitalization saw substantial growth, increasing by N13.79 trillion between January and February.
The equity market’s benchmark index, the All-Share Index, closed February at 99,980.30 points, representing a surge of 33.71% from its opening value of 74,773.77 points earlier in the year.
Despite facing challenges such as rising insecurity, inflation, and foreign exchange instability, NGX investors remained optimistic.
The bullish trend in January, marked by the regular production of trillion-naira market capitalization companies, continued into February, albeit at a slower pace due to bearish tendencies.
Industry experts attribute the market’s resilience to investors seeking refuge in fixed-income securities amid a backdrop of interest rate hikes and high yields.
The recent 400 basis points increase in the benchmark interest rate by the Central Bank of Nigeria further redirected attention to fixed-income instruments, though opportunities in the equities market still beckon, especially for long-term investors eyeing dividend yields.
