In a remarkable achievement, the Nigerian Stock Exchange (NGX) has emerged as the world’s best-performing stock market during the initial three weeks of 2024, culminating in an impressive close at 94,538.12 points on January 19, 2024.
Global Performance Comparison:
The NGX’s outstanding year-to-date return of 26.43% has surpassed its global counterparts, with the S&P Merval Index, representing the Argentine Stock Exchange (BYMA), securing the second position with a year-to-date return of 26.37%.
Global Stock Markets Snapshot (as of 19/01/2024):
- MSCI Emerging Markets EMEA Index: -2.01%
- FTSE/JSE All Africa Share Index: -5.50%
- GSE Composite Index (Ghana): +0.77%
- S&P 500 Index (US): +2.04%
- FTSE UK All-Share Index: -3.34%
- Nairobi Securities Exchange All-Share Index (NASI): +1.37%
Insights into NGX’s Performance:
- In 2023, NGX showcased exceptional performance with the All-Share Index appreciating by 45.90%, closing at 74,773.77 points.
- Since the commencement of 2024, the market has witnessed further appreciation, reaching an All-Share Index of 94,538.12, marking an increase of 19,764.35 points.
- Equities in the market surged by approximately N10.82 trillion in 2024, propelling NGX’s market cap to N51.74 trillion ($57.36 billion), up from N40.92 trillion ($45.11 billion) recorded at the end of 2023.
Contributors to Stellar Performance:
- The robust performance of banking stocks, cement stocks, and other blue-chip stocks played a pivotal role in the market’s stellar performance.
- Year-to-date returns for key players include Dangote Cement (+68.4%), BUA Cement (+53.1%), BUA Foods (24.1%), and Geregu Power Plc (17.1%).
- Standout performers in the banking sector include Wema Bank Plc (+114%), Unity Bank (+116%), Jaiz Bank (77.8%), and Sterling Bank (62.5%).
- FUGAZ banks, including FBN Holdings, UBA, GTCO Holdings, Access Holdings, and Zenith Bank, have posted notable gains.
Companies with Stocks Worth Over N1 Trillion (SWOOTs):
- The number of SWOOTs increased from eight at the end of 2023 to twelve in 2024.
- New entrants to the SWOOT category in 2024 include Access Holdings, United Bank for Africa, Transcorp Hotels, and Geregu Power.
- FBN Holdings and Dangote Sugar have crossed the N1 trillion market cap mark at various points in the year.
Conclusion:
The Nigerian Stock Exchange’s stellar performance in the early weeks of 2024 underscores the resilience and attractiveness of the Nigerian equities market, driven by robust performances in various sectors.
The increase in SWOOTs and the impressive gains of key players contribute to a positive outlook for the nation’s stock market in the coming months.