Nigerian capital markets reach new highs as ASI hits record levels

The Nigerian capital markets displayed resilience on Tuesday, July 16, 2024, with a significant rebound in the All Shares Index (ASI), reaching a new high despite the prevailing economic challenges.

The market capitalisation increased to N56.67 trillion, driven by gains in key indices and robust performance across various sectors.

Market Capitalisation and Index Performance

From Wednesday, July 10, to Tuesday, July 16, the market witnessed fluctuating trends, culminating in notable gains. Here is a detailed comparative analysis over this period:

Market Capitalisation (NGN)

• • Wednesday, 10/07/2024: 56,456,399,274,202.70
  • Thursday, 11/07/2024: 56,267,924,792,822.60
  • Friday, 12/07/2024: 56,440,801,403,512.80
  • Monday, 15/07/2024: 56,608,034,524,151.46
  • Tuesday, 16/07/2024: 56,670,065,264,734.48

All Shares Index (ASI)

• • Wednesday, 10/07/2024: 99,802.08
  • Thursday, 11/07/2024: 99,468.90
  • Friday, 12/07/2024: 99,671.28
  • Monday, 15/07/2024: 99,966.28
  • Tuesday, 16/07/2024: 100,075.59

The market capitalisation and ASI showed a positive trajectory, with Tuesday’s figures marking the highest points within the week. This reflects growing investor confidence and market stability.

The market capitalisation rose from N56.61 trillion on July 15 to N56.67 trillion on July 16.

Also Read: Limited bond market activity signals investor caution

The All Shares Index (ASI) climbed from 99,966.28 to 100,075.59, marking the highest index point for the period. This upward trend indicates growing investor confidence and a positive outlook for the Nigerian equities market.

Sectoral Indices Performance

• NGX Main-Board Index slightly increased from 4,697.49 to 4,698.39.
• NGX 30 Index rose from 3,695.52 to 3,699.02, reflecting strength in the top 30 companies by market capitalisation and liquidity.
• NGX Premium Index, which tracks the top-tier stocks, advanced from 9,824.93 to 9,849.95.
• NGX Banking Index saw a notable rise from 855.56 to 860.80, driven by gains in banking stocks.
• NGX Pension Index also moved higher from 3,766.64 to 3,779.42, indicating positive performance in pension-related investments.
• NGX Consumer Goods Index slightly decreased from 1,568.51 to 1,567.45, showing minor weakness in the consumer goods sector.
• NGX Oil/Gas Index declined from 1,503.98 to 1,500.06, reflecting pressures in the oil and gas sector.
• NGX Industrial Index remained relatively stable, moving from 4,707.62 to 4,710.98.

Noteworthy Movements

The NGX AFR Div Yield Index exhibited significant growth from 11,326.45 to 11,625.08, showcasing the appeal of high dividend-yielding stocks. The NGX MERI Growth Index advanced from 4,743.69 to 4,791.34, indicating investor interest in growth-oriented companies.

Bond Market Overview

The NGX Sovereign Bond Index remained unchanged at 736.37, reflecting stability in government bonds despite broader market fluctuations.

Investor Sentiment

The steady rise in the ASI and the overall positive performance of key indices suggest that investor sentiment is gradually improving.

The market’s resilience amid economic challenges highlights the potential for long-term growth and investment opportunities in the Nigerian capital markets.

The Nigerian capital markets have demonstrated resilience and growth potential, as evidenced by the rise in market capitalisation and the ASI. While certain sectors, such as consumer goods and oil/gas, faced pressures, the overall market outlook remains positive. Investors continue to show confidence in high-performing sectors, driving the market towards new highs.

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