Emmanuel Ochayi
Nigeria’s Equity Market Reacts to Positive Q2 GDP Report
Nigeria’s equity market recorded its second consecutive day of gains on Tuesday, with the All-Share Index (ASI) rising by 0.49%, translating to a N272 billion increase in market capitalization.
This growth is largely attributed to increased investor confidence following the release of Nigeria’s positive second-quarter GDP report.
Join our WhatsApp ChannelThe report, released by the National Bureau of Statistics (NBS), showed that the Nigerian economy grew by 3.19% year-on-year in Q2 2024, a significant improvement from the 2.51% recorded in Q2 2023 and the 2.98% in Q1 2024.
The upbeat GDP data has led investors to take a more optimistic view of the equity market.
Investor Confidence Boosts Equity Market
Speaking on the impact of the GDP report, financial analyst Emeka Udo said, “The positive GDP growth has given investors a renewed sense of confidence in the equity market. We’re seeing this optimism reflected in the buying activity, particularly in shares of major companies.”
The Nigerian Exchange Limited (NGX) All-Share Index (ASI) rose from the previous trading day’s 96,037.28 points to 96,510.13 points, while the market capitalization increased from N55.165 trillion to N55.437 trillion.
The equity market’s performance is a reflection of investors’ growing confidence in the economy, driven by the recent GDP figures.
Key Players in the Equity Market Rally
Total Energies was the top gainer of the day, with its share price climbing from N563 to N619.30, a 10% increase.
Julius Berger also saw significant gains, with its shares rising from N130 to N143, also a 10% increase.
Other notable performers included Neimeth, whose shares rose by 10% from N2 to N2.20, and John Holt, which increased from N2.80 to N3.08, a 10% gain.
SFS REIT also contributed to the equity market’s rally, with its share price moving from N122.65 to N134.90, representing a 9.99% increase.
The strong performance of these companies was a major factor in the overall market’s upward trajectory.
READ ALSO: Equity Market Sees Renewed Optimism Amid Positive GDP Growth
Increased Trading Activity in the Equity Market
The equity market saw a high level of trading activity, with investors exchanging 443,156,566 shares worth N5.635 billion across 8,493 deals.
The most traded shares included Veritas Kapital Assurance, Access Holdings, Universal Insurance, FBN Holdings, and FCMB Group.
Market analyst Bayo Ajayi commented on the increased trading volume, saying, “Investors are clearly more active in the market right now. The positive GDP report has encouraged more participation, and we’re seeing that in the higher trading volumes.”
Outlook for the Equity Market
The recent gains in the market suggest that investor sentiment is on the rise, driven by the stronger-than-expected economic performance.
However, analysts caution that while the GDP growth is a positive sign, it is important for investors to remain vigilant and continue to monitor other economic indicators.
“The equity market is likely to continue its upward trend in the short term, but investors should be cautious of potential volatility,” Udo added. “It’s crucial to keep an eye on other economic factors that could impact the market.”
As the equity market continues to respond to Nigeria’s economic data, investors will be closely watching for further developments that could influence their investment decisions.
The current optimism in the market is a positive indicator, but the sustainability of this trend will depend on the broader economic landscape.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
