Emmanuel OchayiAmidst a surge in trading activity and a marked uptick in market indices, the Nigerian Exchange Limited (NGX) closed the first week of 2024 on a positive trajectory.
The All-Share index witnessed a significant surge of 6.54%, reaching 79,664.66 points, instigating optimism among investors for a potentially robust year ahead.
Market analysts point to sustained investor confidence in listed companies as the primary driving force behind this surge. Mike Ezeh, the Chief Executive Officer of Crane Securities Limited, expressed enthusiasm, linking the market’s vigor to President Bola Tinubu’s ascendancy, citing hopes for impactful economic policies.
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“The emergence of President Bola Tinubu further energized the market since market participants have hope in his ability to rejig the economy and implement economy-friendly policies,” said Ezeh.
Analysts also highlighted the role of recent policy changes and the commissioning of the first indigenous private refinery, which spurred investments in petroleum-related companies, amplifying trading volumes and market capitalization.
Tajudeen Olayinka, Analyst, and CEO of Wyoming Capital and Partners, emphasized the market’s bullish trend in 2023 and forecasted a continued upswing in 2024 with an influx of companies eyeing market listings and public offerings.
“The stock market has been quite eventful and bullish in 2023, and can reasonably project further improvement in 2024, as more companies approach the market for listing and public offerings,” remarked Olayinka.
Additionally, Victor Chiazor, Analyst and Head of Research at FSL Securities Limited, shed light on the expected impact of government policies on the equities market.
“In 2024, we anticipate some level of normalization around recent policy statements by the government hence, the equities market is expected to be driven by company performance as well as new pro-market policies,” commented Chiazor.
This optimistic outlook is reinforced by statistics showcasing the All-Share Index’s gain of 4,890.89 basis points, a week-to-date increase in market capitalization by approximately N2.676 trillion, and a turnover of shares worth N41.755 billion in 46,994 deals.
Despite some indices depreciating marginally, notably the NGX Growth and NGX Sovereign Bond Indices, the overall sentiment remains bullish, projecting a promising trajectory for Nigeria’s stock market in 2024.
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