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  • Business - Market Data
  • Updated: August 29, 2023

Nigerian Exchange All-Share Index Reaches Record 66,490.34 Points

Nigerian Exchange All-Share Index Reaches Record 66,490.34 P

The All-Share Index (ASI) of the Nigerian Exchange Limited (NGX) soared to a historic 66,490.34 points at the close of Tuesday's trade, sending a wave of elation across the Nigerian capital market. 

Breaking the 15-year record of 66,371.20 established on March 5, 2008, the index increased by 0.51% from 66,151.38 the previous day.  

The market's historic success was attributed in large part to a spike in banking equities as investors looked to profit from recently disclosed record earnings by financial institutions.

The market cap rose significantly as well, closing at N39.69 trillion, up 0.51% from N36.21 trillion on Monday. 

The Nigerian stock market has been on an upward trend since the Tinubu administration took office in May, posting significant gains of 6.4% in June and 9.4% in July 2023.

The Year-to-Date (YTD) performance was 25.53% as of the end of July.  

Stocks have already increased by 3.3% in August, adding to the positive trend and setting up the market for a YTD return of over 29% by this Friday's close. 

This outstanding achievement has been greatly aided by a confluence of advantageous economic measures.

Notably, investor confidence has been rekindled by the government's bold moves, such as the withdrawal of fuel subsidies and the harmonisation of exchange rates.  

A rise in domestic investor participation in the equities market, which, according to Nairametrics, increased by an astounding 72% in July alone, was one manifestation of this reinvigorated enthusiasm. 

The NGX Banking Index saw the biggest daily increase among the sectors, rising by 1.63%.

The NGX Consumer Goods Index and the NGX Industrial Index both saw gains of 0.99% and 0.21%, respectively, in close succession.

The NGX Insurance Index experienced a substantial decrease of 1.56%, while the NGX Oil/Gas Index fell by 0.09%. 

The trading session on Tuesday showed a striking rise in transaction volumes and prices. 7 933 transactions totaling 436.95 million shares worth N7.02 billion were completed.

With 55.15 million units trading for N911.21 million, FBN Holdings was in first place both in terms of volume and value. Japaul Gold and UBA came right behind. 

The establishment of President Bola Tinubu's new economic cabinet and investor confidence impacted by macroeconomic trends are two more variables that experts believe contributed to the market's exceptional performance.

Other influential factors mentioned included changes in yields in the fixed-income market. 

Champion Breweries and Flourmills were among the biggest gainers, with stock values rising by an astounding 10%.

The largest losers, on the other hand, were CWG and Linkage Assurance, whose stock values fell by 10%.  

Shares of firms with market values exceeding $1 trillion (SWOOTs) performed inconsistently, with only GTCO and Zenith Bank finishing in the green. 

Mixed trading sessions were also observed at Tier 1 banks, also known as FUGAZ (First Bank, UBA, GTBank, Access Bank, and Zenith Bank). Everybody but UBA closed in the green. 

Although the achievement was enthusiastically greeted, market observers stress the value of strategically investing in fundamentally sound businesses in light of the macroeconomic environment's continued difficulties. 

Investors made N510 billion in profit over the course of two trading hours, making it a historic day for the Nigerian stock market and paving the way for new prospects. 

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