Nigerian stock market gains N14.44trn in January
By Motolani Oseni
The Nigerian stock market ended the first month of the year 2024 on a strong positive note as investors’ investment went up by N14.440 trillion.
Reviewing stock market activities in January, the basic indicators of the Nigerian Stock Exchange (NSE), All-Share Index gained 36.11 per cent to close on January 31, 2024 at 101,154.46 basis points, from 74,773.77 points at which it opened for the year. Market capitalisation for the period rose by N14.440 trillion to close at N55.358 trillion as at January 31, 2023 from N40.918 trillion.
The sectorial performance closed positive as at January 26, 2024. The NGX Industrial Goods recorded the highest rise during the month with a gain of 96.43 per cent. The NGX Premium Board index followed with a monthly gain of 49.71 per cent, while NGX Lotus II index rose by 38.18 per cent in the month of January.
READ ALSO: Senate summons CBN Governor on state of economy , free…
NGX 30 index recorded a monthly gain of 38.08 per cent, while NGX Insurance index achieved 35.35 per cent monthly gain. Others are NGX Consumer Goods, NGX Pension, NX Oil & Gas and NGX Banking indices recorded a monthly gain of 30.33 per cent, 23.66 per cent, 23.03 per cent and 13.89 per cent, respectively.
Capital market analysts said that January was a great month as the Nigerian stock market started the year 2023 on a bullish note, driven by positive sentiment from corporate earnings expectations.
Reviewing market performance for January, the chief executive officer, Sofunix Investment and Communications, Mr. Olusola Oni said: “2024 started with strong interest of Pension Fund Administrators (PFAs), especially in the banks stocks and this triggers rally.
“The valuation of banks is believed to be sustainable. The sector is said to be undervalued. There are whispers that banks’ capital base would go up significantly and their shares would not trade below N100 per unit. By this assumption, there is possibility of sustained upswing in the sector.”
Oni noted that, with their renewed interest in equity investment on NGX, investors should seek professional advice from stockbrokers on how to make informed decisions to enhance their life cycle cash flow.
The chief operating officer of InvestData Consulting Limited, Mr Ambrose Omordion said, trading on the Nigerian Exchange started for the year on a bullish note, with indexes stock prices hitting new highs in the midst strong volatility, increasing economic headwinds and expectation of numbers such as the December Consumer Price Index and quarterly unaudited corporate earnings reports.
On market outlook for February, Omordion said: “we expect mixed sentiments and profit taking to continue on bargain hunting and reactions to earnings reports, as market players digest these numbers in the face of volatility and coming Monetary Policy Committee (MPC) meeting, while pullback at this point will add more strength to upside potential. As such, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.”
Commenting, Vice President, Highcap securities Limited, Mr. David Adnori said the anticipation for end-of-the-year dividend distribution lifted the stock market in January 2024, saying “the performance of the stock market in January is driven by shareholders’ expectation for the end of the year earnings and distribution of dividends.”
