Emmanuel OchayiThe Nigerian Exchange Limited witnessed a surge in its market capitalization, crossing the N40 trillion mark by the close of Wednesday’s trading session.
The uptick was propelled by a robust surge in banking stocks, a trend that has been steadily bolstering the exchange’s performance.
Marking a momentous stride, both the market capitalization and the All-Share Index (ASI) concluded trading at N40.164 trillion and 73,397.71 points, respectively, representing a 1.28 per cent increase.
This surge was propelled chiefly by the impressive performance of key stocks such as GTCO, AccessCorp, Transcorp, FCMB, and United Bank for Africa.
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Capital market stakeholders, buoyed by this monumental achievement, voiced their confidence in the market’s upward trajectory.
Tunde Amolegbe, the Managing Director of Arthur Stevens Asset Management Limited, highlighted the market’s forward-pricing nature and its optimistic outlook on the government’s reforms.
“The stock market is forward-pricing, anticipating positive impacts of policies ahead. Despite immediate negative impacts felt by the populace, the market foresees positive outcomes in the medium to long term,” said Amolegbe.
Similarly, economy and capital market analyst John James projected an even brighter future, anticipating an ASI surge to 75,000 points before year-end. James emphasized the potential of listed companies’ 2023 year-end results, especially within the banking sector, to fuel this growth.
“We are yet to see significant movements in vital sectors like industry, consumer goods, and telecoms, indicating potential for improved returns. Considering this, the ASI is poised to remain above 75,000 points,” James expressed confidently.
The day’s gainers included Transcorp, Multiverse, Infinity Trust Mortgage Bank, ETranZact, and Caverton, posting impressive gains ranging from 9.66 per cent to 10 per cent. On the flip side, Tantalizers Plc, Thomas Wyatt, The Initiates Plc, Juli Plc, and Chams Plc were among the top losers, experiencing declines of up to 10 per cent.
This latest market milestone, achieved within ten months, underscores the resilience and potential of the Nigerian stock market, eliciting positive sentiments from experts who foresee a bullish trajectory ahead.
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