Dangote, UBA drive NGX benchmark index over 77,000 points
The bullish momentum of the Nigerian Exchange Limited (NGX) continued one day after crossing the 75,000 mark, with the All-Share Index appreciating by 2.04%. This translated to a gain of 1,546.69 points, reaching a new level of 77,537.57 points.
Equities experienced substantial gains, contributing to an increase of N847 billion in market capitalization, pushing it to N42.430 trillion. Notable contributors to these gains were Dangote Sugar, UBA, and NASCON, each recording a 10% increase.
Market turnover witnessed an uptick in terms of volume traded, reaching 927.558 million units compared to the previous day's 515.807 million units. There was also an appreciation in terms of value, with a total of N10.69 billion, compared to the previous day's N5.57 billion. The overall performance indicates a sustained positive sentiment in the market, with notable gains in key equities driving the bullish run.
The NGX concluded 2023 on a positive note, buoyed by a resurgence in investor confidence in listed companies. This optimistic trend has instilled confidence among market operators, who anticipate a bullish and active primary market in 2024. There is a prevailing expectation that the primary market for equities will take center stage, with several manufacturers, whose balance sheets were impacted by market reforms, likely to seek capital through the capital market in 2024. Market operators foresee an increase in the number of public companies getting listed on the stock exchange to raise fresh capital. They attribute this positive outlook in part to the orderly transition that resulted in the appointment of new leadership, considering it a welcome development that will further enhance market confidence. The overall sentiment suggests a positive trajectory for the Nigerian stock market, driven by renewed investor trust, potential capital-raising activities, and an anticipated influx of new listings, setting an optimistic tone for the year ahead.