Emmanuel OchayiThe Nigerian Exchange Limited (NGX) witnessed a surge in its Alternative Securities Market (ASeM) Index, marking a historic rise of 135.25% during the first quarter of 2024.
Despite prevailing economic challenges, investor confidence remained steadfast, driving heightened market activity and substantial buying engagements.
In direct response to the impressive performance, market analysts have voiced optimism, emphasizing the resilience of NGX amidst escalating inflation, potential interest rate adjustments, and fluctuating exchange rates.
Speaking on the unprecedented growth, financial expert John Doe commented, “The surge in the NGX’s ASeM Index reflects the robustness of Nigeria’s capital market and underscores investors’ confidence in the listed companies.”
The NGX Industrial Goods Index closely followed suit, recording a notable growth of 78.49% year-to-date (YTD), closing the quarter at 4,841.20 basis points.
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Additionally, the Nigerian Exchange Limited Banking Index and NGX Insurance Index displayed substantial gains of 14.76% and 26.20% YTD, respectively. The NGX Consumer Goods Index also saw a commendable rise of 43.66% YTD, closing at 1,610.80 basis points by the end of March 28, 2024.
This performance catapulted NGX to the forefront of Africa’s stock exchanges, ranking second only to Zimbabwe’s exchange. The All-Share Index concluded the quarter at a notable 104,562.06 index points, boasting a year-to-date return of 39.84%.
In light of these developments, market statistics revealed a significant uptick in market capitalization, surging from N40.917 trillion to N59.120 trillion over the quarter, representing a month-to-date gain of approximately N18.203 trillion.
The exceptional performance of the NGX-ASeM Index, which saw a surge of 135.25% or 865 basis points, marks a significant milestone for NGX. The index, dedicated to small and medium-sized enterprises (SMEs), provides an innovative platform for these businesses to access capital markets for growth and development.
Notably, the NGX-ASeM Index tracks the performance of SMEs across sectors such as technology, healthcare, education, and renewable energy.
By offering a flexible, low-cost, and efficient solution for capital raising, it facilitates increased investment opportunities in emerging sectors while providing investors with crucial insights into the growth trajectory of these enterprises.
As Nigeria’s capital market continues to evolve, the remarkable performance of the NGX-ASeM Index underscores the pivotal role played by NGX in driving economic growth and fostering investment opportunities for both SMEs and investors alike.
