Fatshimetrie, A Look at the Economy: Nigerian Stock Exchange to Perform Outstandingly in September 2024
During the month of September 2024, the Nigerian Stock Exchange impressed observers by recording a remarkable performance despite the economic challenges facing the country. Investors on the Nigeria Exchange, NGX, were able to reap over N1.15 trillion thanks to a series of positive movements in the financial markets.
Market capitalization, which represents the total value of investments listed on the Exchange, closed at N56.635 trillion, up from N55.477 trillion at the end of August 2024. The major stock index, the NGX All Share Index, ASI, advanced by 2.05 per cent during the month, closing at 98,558.79 points, compared to 96,579.54 points in August 2024.
Sectoral activities also posted significant gains, with the NGX Mainboard Index up by 0.9 per cent to close at 4,832.03 points, and the NGX 30 Index up by 2.05 per cent to settle at 3,663.48 points. The NGX Premium Index posted a 4.5% growth and the Banking Index rose 10.2%, while the Pension Index gained 5.95%.
Year-to-date returns increased by 31.8%, with total volume traded up significantly by 134.1% to 1.86 billion units, worth N111.58 billion, traded in 10,583 deals.
Analysts at Investdata Consulting commented on investors’ good fortune in September saying that stock market investors knew that many stocks were undervalued and took advantage of it. Furthermore, the arrival of foreign investors in the market is attributed to the improvement in the exchange rate. They also point out that the current state of the market, with a likely continuation of the uptrend or a reversal, has created investment opportunities in companies that are genuinely valued and have attractive price-to-earnings ratios, as evidenced by their half-year results and their price-to-earnings ratios ahead of the release of their third-quarter results.
In conclusion, the exceptional performance of the Nigerian stock market in September 2024 underscores investors’ confidence in the opportunities offered by the country’s economy, despite the ongoing challenges. This positive trend is evidence of encouraging momentum for the financial sector and the economy as a whole, paving the way for new growth and investment prospects in a constantly changing economic environment.