Emmanuel OchayiEquities trading on the Nigerian Exchange Limited (NGX) wrapped up the first quarter of 2024 with remarkable positivity, driven by a surge in investor confidence towards listed corporations.
In a landmark achievement, the NGX All-Share Index closed at 104,562.06 index points by the end of March, showcasing a significant uptrend despite economic challenges such as inflation and security concerns.
“The market’s performance this quarter reflects a notable resilience and investor confidence,” stated Mr. David Adonri, Executive Vice Chairman of Hicap Securities Limited. “Investors are optimistic about the earnings season and the potential dividends.”
Throughout the quarter, the NGX witnessed notable fluctuations. While it reached unprecedented highs, it also experienced setbacks, notably in February, when profit takings led to an estimated loss of N650 billion. However, the market quickly rebounded, with March witnessing a significant boost, fueled in part by the listing of Transcorp Power Plc.
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“The listing of Transcorp Power Plc injected fresh momentum into the market, underlining investors’ appetite for strategic opportunities,” remarked Mr. Olatunde Amolegbe, Managing Director of Arthur Steven Asset Management Limited. “It also signifies a broader demographic shift, with more local institutions and retail investors driving market sentiment.”
Analysts attribute the market’s buoyancy to various factors, including favorable government policies aimed at stimulating economic growth. President Bola Tinubu’s administration’s initiatives, such as the removal of fuel subsidies and exchange rate reforms, have instilled confidence among investors.
“The market is responding positively to policy changes, anticipating increased foreign investment inflows and short-term inflationary pressures,” explained Amolegbe. “This optimism, coupled with robust earnings reported by listed firms, has propelled the NGX All-Share Index to impressive gains.”
Despite lingering uncertainties, including political tensions and economic volatility, analysts remain bullish on the NGX’s outlook.
“The NGX’s resilience amidst challenges underscores its potential as a lucrative investment avenue,” concluded Adonri. “With a growing base of local investors and supportive policies, the market is poised for sustained growth in the coming quarters.”
