The Nigerian Exchange (NGX) has kicked off 2024 with an unprecedented gain as stock investors pocketed N18.203 trillion gain in the first quarter alone.
Investors are reaping the rewards of a bullish trading pattern that has extended from the inauguration of President Bola Ahmed Tinubu in 2023 into the new year.
The Exchange All-Share Index closed at 74,773.77 index points in 2023, a 45.90% gain it carried into the new year while the market capitalization surged to N40.917 trillion by the end of the year.
The first quarter of 2024 witnessed the continuation of this bullish trend as many companies grew in market capital and profit.
In the first quarter, FBN Holdings joined the trillion-naira club while Dangote Cement emerged as the first entity to achieve a market cap of N10tn.
The listing of Transcorp Power Plc further fueled market capitalisation close to the historic N60 trillion mark by March’s end.
Oscar Onyema, the immediate past Managing Director/Chief Executive Officer of the Nigerian Exchange Group, likened the market’s boom to the pre-2008 global meltdown period, highlighting the parallels in euphoria and growth.
Despite challenges posed by escalating inflation, potential interest rate adjustments, and volatile exchange rates, investor confidence remained steadfast.
The NGX-Alternative Security Market recorded a 135.25% gain amid economic uncertainties.
Analysts dissecting the market’s performance emphasized the role of sentiment over fundamentals, indicating a surge driven by optimism rather than concrete economic improvements.
While profit-taking activities and market volatility punctuated the quarter, the overall trajectory remained upward.
Looking ahead, projections for the second quarter anticipate mixed performance, with factors like macroeconomic instabilities and corporate actions shaping investor sentiment.
Nevertheless, the NGX’s stellar performance in Q1 2024 stands as a testament to the resilience and potential of the Nigerian equities market, offering a beacon of hope amid global economic uncertainties.